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| Elbasha, Elamin H.; Roe, Terry L.. |
| The implications of environmental externalities are studied within three classes of endogenous growth models viz. the linear technology models, the human capital models, and the R&D and innovation models. The long-run rate of economic growth changes when environmental extemalities are introduced; the direction of change depends on the severity of extemalities and the intertemporal elasticity of substitution. The presence of environmental externalities cause the decentralized growth rate to diverge from the efficient rate. Which rate is bigger than the other depends, among other things, on the valuation of consumption relative to environmental quality. Several policy changes to align the two paths are discussed. The models are calibrated to U.S. data. |
| Tipo: Working or Discussion Paper |
Palavras-chave: Environmental Economics and Policy; International Development. |
| Ano: 1995 |
URL: http://purl.umn.edu/7474 |
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| Elbasha, Elamin H.; Roe, Terry L.. |
| This paper uses an endogenous growth model to examine the interaction between trade, economic growth, and the environment. We find that whether trade enhances or retards growth depends on the relation between factor intensities of exportable, importable, and R&D and the relative abundance of the factor R&D uses more intensively. Depending on the intertemporal elasticity of substitution, the long-run rate of economic growth changes with environmental externalities. Concerns about the environment can explain a significant part of cross-country difference in growth rates. For the empirically reported range of the elasticity of intertemporal substitution, countries which care more about the environment grow faster. The effects of trade on the... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Environmental Economics and Policy; F11; O31; O41; Q20. |
| Ano: 1995 |
URL: http://purl.umn.edu/7493 |
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| Diao, Xinshen; Elbasha, Elamin H.; Roe, Terry L.; Yeldan, A. Erinc. |
| An R&D based endogenous growth - applied general equilibrium model is developed from an underlying analytical model which combines Romer's capital variety with Grossman and Helpman's multi-sector open economy model. The transitional dynamics of the analytical model are derived. For numerical implementation, a time discrete empirical model, with an Armington structure, is fit to East Asian data of the social accounting matrix variety. Simulations of trade reform are performed and their static and dynamic effects compared. The transition paths of the state variables are found to have a half-life of five to six periods. A solution of the Social Planner's problem, and interventions which seek to obtain this outcome from the decentralized model are also... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Applied General Equilibrium; Trade; Growth; International Relations/Trade; F11; 031; 041. |
| Ano: 1996 |
URL: http://purl.umn.edu/7461 |
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