The impact of public goods and services and public R&D on the non-observed economy size, wages inequality and growth

• Type: Article in International Scientific Journal
• Date: 2012

Authors

Óscar Afonso (Author) FEP

Journal

Title: Economic Modelling

Vol. 29 No. 5

Pages: 1996-2004

ISSN: 0264-9993

Publisher: Elsevier

Indexing

ISI Web of Knowledge - 3 Citations

ISI Web of Science

Scopus - 5 Citations

Econlit

Scientific classification

FOS: Social sciences > Economics and Business

Other information

Authenticus ID: P-002-65K

DOI: 10.1016/j.econmod.2012.06.003

Abstract (EN): We develop a general equilibrium endogenous growth model in which final goods can be produced either in the Non-Observed Economy (NOE) or in the Official Economy (OE). In particular, by solving transitional dynamics numerically towards the unique and stable steady state, we show that, by affecting the technological-knowledge bias in favour of the OE, productive public goods and services and public policies promoting R&D explain the simultaneous rise in the OE size, the wage premium in favour of OE workers and the economic growth rate. These results are mainly in line with empirical evidence for developed countries, since the 1990s.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 9