Tag Archives: Economic Growth

Summers: We haven’t done it in 15 years and Japan hasn’t done it in a generation

Starts around the 9 min mark. HT: Mark Thoma

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Heterogeneous Mark-Ups, Growth and Endogenous Misallocation

From Michael Peters: The recent work on misallocation argues that aggregate productivity in poor countries is low because various market frictions prevent marginal products from being equalized. By focusing on such allocative inefficiencies, misallocation is construed as a purely static … Continue reading

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America risks becoming a Downton Abbey Economy

From Larry Summers: Inequality has emerged as a major issue in the US and beyond. A generation ago it could reasonably have been asserted that the overall growth rate of the economy was the main influence on the growth in … Continue reading

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The Long Short Run

From Brad Delong (full article here): The problem now is that the natural interest rate – that is, the liquid safe nominal interest rate on short-term US Treasury securities – is less than zero. Thus, the central bank cannot push … Continue reading

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Macroeconomic Implications of Agglomeration

From Morris Davis, Jonas Fisher, and Toni Whited: Cities exist because of the productivity gains that arise from clustering production and workers, a process called agglomeration. How important is agglomeration for aggregate growth? This paper constructs a dynamic stochastic general … Continue reading

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Lessons from a Half Century of Federal Individual Income Tax Changes

This chart shows how income tax liabilities have changed each year for the five income quintiles over the past half century.  Here are a few things to notice: We love cutting income taxes. Almost all of the changes are tax … Continue reading

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Facts are Stubborn Things: High Income Tax Rates and Job Creation

Throughout the campaign and through the fiscal cliff discussions, Republicans have consistently espoused the idea that modestly raising top marginal rates will destroy job creation. For instance, here is Sen Lindsey Gram from ABC’s “This Week”, “[T]o avoid becoming Greece, … Continue reading

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