References of "Irmen, Andreas 50002026"
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See detailSteady-State Growth and the Elasticity of Substitution
Irmen, Andreas UL

in Journal of Economic Dynamics & Control (2011), 35

In a neoclassical economy with endogenous capital- and labor-augmenting technical change the steady-state growth rate of output per worker is shown to increase in the elasticity of substitution between ... [more ▼]

In a neoclassical economy with endogenous capital- and labor-augmenting technical change the steady-state growth rate of output per worker is shown to increase in the elasticity of substitution between capital and labor. This confirms the assessment of Klump and de La Grandville (2000) that a greater elasticity of substitution allows for faster of economic growth. However, unlike their findings my result applies to the steady-state growth rate. Moreover, it does not hinge on particular assumptions on how aggregate savings come about. It holds for any household sector allowing savings to grow at the same rate as aggregate output. Download Info [less ▲]

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See detailSteady-State Growth and the Elasticity of Substitution
Irmen, Andreas UL

Report (2010)

In a neoclassical economy with endogenous capital- and labor-augmenting technical change the steady-state growth rate of output per worker is shown to increase in the elasticity of substitution between ... [more ▼]

In a neoclassical economy with endogenous capital- and labor-augmenting technical change the steady-state growth rate of output per worker is shown to increase in the elasticity of substitution between capital and labor. This confirms the assessment of Klump and de La Grandville (2000) that the elasticity of substitution is a powerful engine of economic growth. However, unlike their findings my result applies to the steady-state growth rate. Moreover, it does not hinge on particular assumptions on how aggregate savings come about. It holds for any household sector allowing savings to grow at the same rate as aggregate output. [less ▲]

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See detailFrictional unemployment, labor market institutions, and endogenous economic growth
Irmen, Andreas UL

in Economics Bulletin (2009), 29(2), 1127-1138

For a given set of labor market institutions, the rate of frictional unemployment depends on the evolution of the pool of job-seekers. Unemployment rises with the growth rate of labor supply that is ... [more ▼]

For a given set of labor market institutions, the rate of frictional unemployment depends on the evolution of the pool of job-seekers. Unemployment rises with the growth rate of labor supply that is proportionate to the rate of population growth. If economic growth is semi-endogenous, the steady-state growth rate depends positively on the rate of population growth. This suggests a trade-off between growth and unemployment: a faster growing economy has a higher unemployment rate. As a consequence, faster growth may not be desirable from a welfare point of view. We make this point in a parsimonious setting where semi-endogenous growth derives from the division of labor and the associated gains from specialization. [less ▲]

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See detailFactor Substitution, Income Distribution and Growth in a Generalized Neoclassical Model
Irmen, Andreas UL; Klump, Rainer UL

in GERMAN ECONOMIC REVIEW (2009), 10(4), 464-479

We analyze a generalized neoclassical growth model that combines a normalized CES production function and possible asymmetries of savings out of factor incomes. This generalized model helps to shed new ... [more ▼]

We analyze a generalized neoclassical growth model that combines a normalized CES production function and possible asymmetries of savings out of factor incomes. This generalized model helps to shed new light on a recent debate concerning the impact of factor substitution and income distribution on economic growth. We show that this impact relies on both an efficiency and a distribution effect, where the latter is caused by the distributional consequences of an increase in the elasticity of substitution. While the efficiency effect is always positive, the sign of the distribution effect depends on the particular savings hypothesis. If the savings rate out of capital income is substantial so that a certain threshold value is surpassed, the efficiency effect dominates and higher factor substitution accelerates the accumulation of capital and works as a major engine of growth. [less ▲]

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See detailFactor Substitution, Income Distribution and Growth in a Generalized Neoclassical Model
Irmen, Andreas UL; Klump, Rainer

in German Economic Review (2009), 10

We analyze a generalized neoclassical growth model that combines a normalized CES production function and possible asymmetries of savings out of factor incomes. This generalized model helps to shed new ... [more ▼]

We analyze a generalized neoclassical growth model that combines a normalized CES production function and possible asymmetries of savings out of factor incomes. This generalized model helps to shed new light on a recent debate concerning the impact of factor substitution and income distribution on economic growth. We show that this impact relies on both an efficiency and a distribution effect, where the latter is caused by the distributional consequences of an increase in the elasticity of substitution. While the efficiency effect is always positive, the sign of the distribution effect depends on the particular savings hypothesis. If the savings rate out of capital income is substantial so that a certain threshold value is surpassed, the efficiency effect dominates and higher factor substitution accelerates the accumulation of capital and works as a major engine of growth. Copyright 2009 The Authors. Journal Compilation Verein für Socialpolitik and Blackwell Publishing Ltd. [less ▲]

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See detailProductive Government Expenditure And Economic Growth
Irmen, Andreas UL; Kuehnel, Johanna

in Journal of Economic Surveys (2009), 23(4), 692-733

We provide a comprehensive survey of the recent literature on the link between productive government expenditure and economic growth. We show that an understanding of the core results and the ensuing ... [more ▼]

We provide a comprehensive survey of the recent literature on the link between productive government expenditure and economic growth. We show that an understanding of the core results and the ensuing contributions can be gained from the study of their respective Euler equations. We argue that the existing literature incorporates many relevant aspects; however, policy recommendations tend to hinge on several knife-edge assumptions. Therefore, future research ought to focus more on idea-based endogenous growth models to check the robustness of policy recommendations. Moreover, the inclusion of hitherto unexplored types of government expenditure, e.g. on the 'rule of law', would be desirable. Copyright � 2009 Blackwell Publishing Ltd. [less ▲]

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See detailComment on "On the openness to trade as a determinant of the macroeconomic elasticity of substitution"
Irmen, Andreas UL

in Journal of Macroeconomics (2008), 30(2), 703-706

This paper provides a comment on the analysis of the link between an economy's openness to trade and its macroeconomic elasticity of substitution (ES) presented in Saam [Saam, M., 2008. Openness to trade ... [more ▼]

This paper provides a comment on the analysis of the link between an economy's openness to trade and its macroeconomic elasticity of substitution (ES) presented in Saam [Saam, M., 2008. Openness to trade as a determinant of the macroeconomic elasticity of substitution. Journal of Macroeconomics 30, 691-702.]. [less ▲]

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See detailNeoclassical growth and the "trivial" steady state
Hakenes, Hendrik; Irmen, Andreas UL

in Journal of Macroeconomics (2008), 30(3), 1097-1103

According to a common perception, the neoclassical economy void of capital cannot evolve to strictly positive levels of output, if capital is essential. We challenge this view and claim for a broad class ... [more ▼]

According to a common perception, the neoclassical economy void of capital cannot evolve to strictly positive levels of output, if capital is essential. We challenge this view and claim for a broad class of production functions, encompassing the neoclassical production function, that a take-off is possible even though the initial capital stock is zero and capital is essential. Since the marginal product of capital is initially infinite, the \"trivial\" steady state becomes so unstable that the solution to the equation of motion involves the possibility of a take-off. When it happens, the take-off has no cause. [less ▲]

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See detailCross-Country Income Differences and Technology Diffusion in a Competitive World
Irmen, Andreas UL

Report (2008)

This paper develops a new open-economy endogenous growth model where technology diffusion allows for a stable and non-degenerate world income distribution. In accordance with the empirical literature, I ... [more ▼]

This paper develops a new open-economy endogenous growth model where technology diffusion allows for a stable and non-degenerate world income distribution. In accordance with the empirical literature, I find that country characteristics such as the social infrastructure, the degree of openness, the investment rate, population growth, the level of human capital, or growth policies such as subsidies to innovation investments explain a country’s position in the eventual world income distribution. Club convergence in growth rates can be traced back to a country’s openness and to a minimum required level of human capital. [less ▲]

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See detailOn the long-run evolution of technological knowledge
Hakenes, Hendrik; Irmen, Andreas UL

in Economic Theory (2007), 30(1), 171-180

This paper revisits the debate about the appropriate differential equation that governs the evolution of knowledge in models of endogenous growth. We argue that the assessment of the appropriateness of an ... [more ▼]

This paper revisits the debate about the appropriate differential equation that governs the evolution of knowledge in models of endogenous growth. We argue that the assessment of the appropriateness of an equation of motion should not only be based on its implications for the future, but that it should also include its implications for the past. We maintain that the evolution of knowledge is plausible if it satisfies two asymptotic conditions: Looking forwards, infinite knowledge in finite time should be excluded, and looking backwards, knowledge should vanish towards the beginning of time (but not before). Our key results show that, generically, the behavior of the processes under scrutiny is either plausible in the future and implausible in the past or vice versa, or implausible at both ends of the time line.<P>(This abstract was borrowed from another version of this item.) [less ▲]

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See detailNational minimum wages, capital mobility, and global economic growth
Irmen, Andreas UL; Wigger, Berthold U.

in Economics Letters (2006), 90(2), 285-289

How do national minimum wages affect global economic growth? We address this question in a two-country endogenous growth model with capital mobility that emphasizes a link between wages, savings and ... [more ▼]

How do national minimum wages affect global economic growth? We address this question in a two-country endogenous growth model with capital mobility that emphasizes a link between wages, savings and growth. We identify the conditions on technology and national preferences that determine whether national minimum wages are a stimulus or an obstacle to growth. Technology matters because it determines the functional distribution of global income as well as output effects associated with the emergence of national unemployment due to minimum wages. Interestingly, differences in national savings propensities do not only affect the strength of the growth effect associated with minimum wages but may even determine its direction.<P>(This abstract was borrowed from another version of this item.) [less ▲]

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See detailSomething out of Nothing? Neoclassical Growth and the ‘Trivial’ Steady State
Hakenes, Hendrik; Irmen, Andreas UL

Report (2006)

A common perception about the neoclassical growth model is that an economy devoid of capital cannot evolve to strictly positive levels of output if capital is essential. We challenge this view by positing ... [more ▼]

A common perception about the neoclassical growth model is that an economy devoid of capital cannot evolve to strictly positive levels of output if capital is essential. We challenge this view by positing a broad class of production functions, encompassing the neoclassical production function, that—surprisingly—show that a take-off is possible even though the initial capital stock is zero and capital is essential. Since the marginal product of capital is initially infinite, the “trivial” steady state becomes so unstable that the solution to the equation of motion involves the possibility of a take-off. When it happens, the take-off is spontaneous: there is no causality, not even randomness. [less ▲]

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See detailNeoclassical Growth and the 'Trivial' Steady State
Hakenes, Hendrik; Irmen, Andreas UL

Report (2005)

If capital is an essential input, the neoclassical growth model has a steady state with zero capital. From this, one is inclined to conclude that an economy starting without capital can never grow. We ... [more ▼]

If capital is an essential input, the neoclassical growth model has a steady state with zero capital. From this, one is inclined to conclude that an economy starting without capital can never grow. We challenge this view and claim that, if the production function satisfies the Inada conditions, a take-off is possible even though the initial capital stock is zero and capital is essential. Since the marginal product of capital is initially infinite, the ‘trivial’ steady state becomes so unstable that the solution to the equation of motion involves the possibility of a take-off, even without capital. When it happens, the take-off is spontaneous; there is no causality. [less ▲]

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See detailShopping hours and price competition
Inderst, Roman; Irmen, Andreas UL

in European Economic Review (2005), 49(5), 1105-1124

This Paper develops an argument explaining why retail prices may rise in response to the deregulation of opening hours. We make this point in a model of imperfect duopolistic competition. In a deregulated ... [more ▼]

This Paper develops an argument explaining why retail prices may rise in response to the deregulation of opening hours. We make this point in a model of imperfect duopolistic competition. In a deregulated market retailers view the choice of opening hours as a means to increase the degree of perceived product differentiation thus relaxing price competition. If the opportunity costs of the time spent on shopping are sufficiently high the equilibrium configuration has asymmetric shopping hours where one retailer stays open for longer than the other does. Both retailers charge higher prices than under regulation, and both are strictly better off.<P>(This abstract was borrowed from another version of this item.) [less ▲]

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See detailExtensive and intensive growth in a neoclassical framework
Irmen, Andreas UL

in Journal of Economic Dynamics & Control (2005), 29(8), 1427-1448

Extensive growth based on the expansion of inputs is likely to be subject to diminishing returns. Therefore it is often viewed as having no effect on per capita magnitudes in the long run. This Paper ... [more ▼]

Extensive growth based on the expansion of inputs is likely to be subject to diminishing returns. Therefore it is often viewed as having no effect on per capita magnitudes in the long run. This Paper argues that periods of extensive growth through capital accumulation may be a precursor to periods of intensive growth during which output per unit of input grows through endogenous technical change. Such a sequence of stages of development occurs as capital accumulation affects the incentives to engage in labour-saving technical change. A steady rise in the capital-labour ratio affects the relative scarcity of factors of production, their (expected) relative price, and induces innovation investments.<P>(This abstract was borrowed from another version of this item.) [less ▲]

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See detailMalthus and Solow - a note on closed-form solutions
Irmen, Andreas UL

in Economics Bulletin (2004), 10(6), 1-6

Recently, Jones (2002 and Barro and Sala-í-Martin (2004) pointed out that the neoclassical growth model with a Cobb-Douglas technology has a closed-form solution. This note makes a similar remark for the ... [more ▼]

Recently, Jones (2002 and Barro and Sala-í-Martin (2004) pointed out that the neoclassical growth model with a Cobb-Douglas technology has a closed-form solution. This note makes a similar remark for the Malthusian model: I develop and characterize a closed-form solution. Moreover, I emphasize structural similarities between the Malthusian and the neoclassical model if the dynamic behavior is governed by a Bernoulli differential equation. [less ▲]

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See detailExtensive and Intensive Growth in a Neoclassical Framework
Irmen, Andreas UL

Report (2004)

Extensive growth based on the expansion of inputs is likely to be subject to diminishing returns. Therefore it is often viewed as having no effect on per capita magnitudes in the long run. This Paper ... [more ▼]

Extensive growth based on the expansion of inputs is likely to be subject to diminishing returns. Therefore it is often viewed as having no effect on per capita magnitudes in the long run. This Paper argues that periods of extensive growth through capital accumulation may be a precursor to periods of intensive growth during which output per unit of input grows through endogenous technical change. Such a sequence of stages of development occurs as capital accumulation affects the incentives to engage in labour-saving technical change. A steady rise in the capital-labour ratio affects the relative scarcity of factors of production, their (expected) relative price, and induces innovation investments. [less ▲]

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See detailNational Minimum Wages, Capital Mobility and Global Economic Growth
Irmen, Andreas UL; Wigger, Berthold

Report (2002)

How do national minimum wages affect global economic growth? We address this question in a two-country endogenous growth model with capital mobility that emphasizes a link between wages, savings and ... [more ▼]

How do national minimum wages affect global economic growth? We address this question in a two-country endogenous growth model with capital mobility that emphasizes a link between wages, savings and growth. We identify the conditions on technology and national preferences that determine whether national minimum wages are a stimulus or an obstacle to growth. Technology matters because it determines the functional distribution of global income as well as output effects associated with the emergence of national unemployment due to minimum wages. Interestingly, differences in national savings propensities do not only affect the strength of the growth effect associated with minimum wages but may even determine its direction. [less ▲]

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See detailTrade Union Objectives and Economic Growth
Irmen, Andreas UL; Wigger, Berthold U.

in FinanzArchiv: Public Finance Analysis (2002), 59(1), 49-

A trade union whose purpose is to raise wages above the competitive level may foster economic growth if it succeeds in shifting income away from the owners of capital to the workers and if the workers ... [more ▼]

A trade union whose purpose is to raise wages above the competitive level may foster economic growth if it succeeds in shifting income away from the owners of capital to the workers and if the workers' marginal propensity to save exceeds the one of capitalists. We make this point in an overlapping generations framework with unionized labor. Considering a monopoly union which cares for wages and employment, we determine a range of trade union objectives and characterize the aggregate technology so that the union's policy spurs per capita income growth. However, the union's policy cannot lead to a Pareto-improvement. [less ▲]

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See detailNational Minimum Wages, Capital Mobility and Global Economic Growth
Irmen, Andreas UL; Wigger, Berthold

Report (2002)

How do national minimum wages affect global economic growth? We address this question in a two-country endogenous growth model with capital mobility that emphasizes a link between wages, savings and ... [more ▼]

How do national minimum wages affect global economic growth? We address this question in a two-country endogenous growth model with capital mobility that emphasizes a link between wages, savings and growth. We identify the conditions on technology and national preferences that determine whether national minimum wages are a stimulus or an obstacle to growth. Technology matters because it determines the functional distribution of global income as well as output effects associated with the emergence of national unemployment due to minimum wages. Interestingly, differences in national savings propensities do not only affect the strength of the growth effect associated with minimum wages but may even determine its direction. [less ▲]

Detailed reference viewed: 81 (1 UL)