Showing papers by "Óscar Afonso published in 2015"

Dynamic Political Effects in a Neoclassic Growth Model with Healthcare and Creative Activities

Abstract: This paper extends the Ramsey-Cass-Koopmans (RCK) model by considering both a non constant number of hours worked by each individual through time and leisure, which includes healthcare and creative activities. With this extension, the seminal RCK model can be used to analyse the economic growth effects arising from governmental policies. In this context, governmental expenditures financed by lump-sum taxes and inefficient expenditures lead to a decrease in the short, medium and long-run economic growth.

Skill-Structure Shocks, the Share of the High-Tech Sector and Economic Growth Dynamics, FEP Working Paper 554 January

Abstract: By means of an endogenous growth model of directed technical change with vertical and horizontal R&D, we study a transitional-dynamics mechanism that is consistent with the changes in the share of the high- versus the low-tech sectors found in recent European data. Under the hypothesis of a positive shock in the proportion of high-skilled labour, the technological-knowledge bias channel leads to nonbalanced sectoral growth with a noticeable shift of resources across sectors. A simple calibration exercise suggests that, under prevailing market-scale effects, the model is able to account for up to 50 to 100 percent of the increase in the share of the high-tech sector observed in the data from 1995 to 2007. However, the model predicts that the dynamics of the share of the high-tech sector has no significant impact on the economic growth rate.

Endogenous growth effects of environmental policies

Abstract: To analyse the impact of the environmental policies, we start by reviewing the literature on the environment, technological knowledge and economic growth. Then, we build a general equilibrium endogenous growth model where final goods are produced either in the skilled-labour intensive Clean sector or in the unskilled-labour intensive Unclean sector. By solving numerically transitional dynamics towards the unique and stable steady state, we observe that environmental policies encourage scale-invariant technological-knowledge bias. This, in turn, promotes environmental quality, the skill premium and economic growth. Moreover, the impact of population growth on the steady-state growth rate is higher under strong households’ environmental conscientiousness with future generations. Key words: (Un)Clean sector, Environmental policies, Environmental conscientiousness, Growth, Wages.JEL: C63, J31, O13, O31, Q55, Q58.

Economic growth effects of an international crisis

Abstract: We develop a general equilibrium endogenous growth model where final goods are produced in either the exporter sector or the importer sector, in order to analyze the short, medium and long-run growth effects of an external demand shock induced by an international crisis, such as the current one. Depending on the policy response, such a shock might (or might not) severely affect competitiveness, wage inequality, the economic growth rate and the technological-knowledge bias. This bias controls the paths towards the new steady state. The model shows that countries with balanced public finances can accommodate the external shock and that the intervention should be prompt, as the delay is costly. Results appear to be supported by empirical evidence.

Environmental policy on dirty and ecological technology

Abstract: This paper develops a Schumpeterian R&D growth model with endogenous directed technological change. The aim is to study the contributions of environmental policies to the production of ecological goods, when consumers are indifferent between ecological and dirty goods. By solving the transitional dynamics numerically and by removing the scale effects, it is shown that, through the price channel, when green firms and green research are supported by policy and/or dirty activities are taxed, technological progress leads to relatively more production of ecological goods and environmental quality improvements.

Economia informal e exclusão social

Abstract: The purpose of this paper is to analyse the accounting and legal basis that justify the application of presumptions in the taxation corporate income. The connection between errors on recording transactions by the financial accounting system and the use of presumptions by tax authorities will be highlighted. The paper contributes to the literature by offering a systematic analysis of the criteria used by Portuguese tax courts to decide when accounting data can be disregarded by tax authorities and presumptions can therefore be used as a tax computation tool. Given that the general rule is to base taxable income on accounting records (albeit with adjustments established in Corporate Income Tax Code) presumptions are a striking exception to this well established rule. As such, tax researchers, tax authorities and taxpayers have a significant interest in knowing how do courts validate or deny tax authorities’ approach when using presumptions.

Skill-Structure Shocks, the Share of the High-Tech Sector and Economic Growth Dynamics

Abstract: By means of an endogenous growth model of directed technical change with vertical and horizontal R&D, we study a transitional-dynamics mechanism that is consistent with the changes in the share of the high- versus the low-tech sectors found in recent European data. Under the hypothesis of a positive shock in the proportion of high-skilled labour, the technological-knowledge bias channel leads to nonbalanced sectoral growth with a noticeable shift of resources across sectors. A simple calibration exercise suggests that, under prevailing market-scale effects, the model is able to account for up to 50 to 100 percent of the increase in the share of the high-tech sector observed in the data from 1995 to 2007. However, the model predicts that the dynamics of the share of the high-tech sector has no significant impact on the economic growth rate.

Environmental Policy on Dirty and Technological Technology

Abstract: This paper develops a Schumpeterian R&D growth model with endogenous directed technological change. The aim is to study the contributions of environmental policies to the production of ecological goods, when consumers are indifferent between ecological and dirty goods. By solving the transitional dynamics numerically and by removing the scale effects, it is shown that, through the price channel, when green firms and green research are supported by policy and/or dirty activities are taxed, technological progress leads to relatively more production of ecological goods and environmental quality improvements.

Computational Economics: A concise introduction

Abstract: I Static economic models 1 Supply and demand 2 IS-LM in a closed economy 3 IS-LM in an open economy 4 AD-AS 5 Portfolio II Dynamic economic models 6 Supply and demand dynamics 7 Duopoly 8 SP-DG 9 Solow 10 Skill-biased technological change 11 Technological-knowledge diffusion 12 Ramsey-Cass-Koopmans