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Full-Text Articles in International Economics

Stock Markets, Credit Markets, And Technology-Led Growth, James R. Brown, Gustav Martinsson, Bruce C. Petersen Oct 2017

Stock Markets, Credit Markets, And Technology-Led Growth, James R. Brown, Gustav Martinsson, Bruce C. Petersen

Finance Publication

The high-tech sector accounts for the majority of corporate innovation in modern economies. In a sample of 38 countries, we document a strong positive relation between the initial size of the country's high-tech sector and subsequent rates of GDP and total factor productivity growth. We also find a strong positive connection between a country's equity (but not credit) market development and the size of its high-tech sector. Our main difference-in-differences estimates show that better developed stock markets support faster growth of innovative-intensive, high-tech industries. The main channels for this effect are higher rates of productivity and faster growth ...


Duality Theory In Empirical Work, Revisited, Francisco Rosas, Sergio H. Lence Aug 2017

Duality Theory In Empirical Work, Revisited, Francisco Rosas, Sergio H. Lence

Economics Publications

We compute a pseudo-dataset by Monte Carlo simulations featuring important characteristics of US agriculture, such that the initial technology parameters are known, and employing widely used datasets for calibration. Then, we show the usefulness of this calibration by applying the duality theory approach to datasets bearing as sources of noise only the aggregation of technologically heterogeneous firms. Estimation recovers initial parameters with reasonable accuracy. These conclusions are expected, but the proposed calibration sets the basis for analysing the performance of duality theory in empirical work when datasets have more observed and unobserved sources of noise, as those faced by practitioners.