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Robert E. Lucas

Bio: Robert E. Lucas is an academic researcher from University of Chicago. The author has contributed to research in topics: Population & General equilibrium theory. The author has an hindex of 81, co-authored 204 publications receiving 94081 citations. Previous affiliations of Robert E. Lucas include National Bureau of Economic Research & Boston University.


Papers
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01 Jan 2004
TL;DR: This paper developed a general equilibrium model of world trade, based on the technology proposed by Eaton and Kortum, and test the ability of a calibrated version of the model to account for trade volumes, and use the theory to simulate the gains from hypothetical trade liberalizations.
Abstract: This paper develops a general equilibrium model of world trade, based on the technology proposed by Eaton and Kortum. We study the existence and uniqueness of equilibrium. We propose and test an algorithm for calculating equilibria. We test the ability of a calibrated version of the model to account for trade volumes, and use the theory to simulate the gains from hypothetical trade liberalizations.

2 citations

03 May 2012
TL;DR: In this article, two distinct explanations have been postulated for the observed positive correlation between incomes of children and those of their parents: parental wealth may restrict investment in human capital of children, or unobserved abilities that are positively associated with earnings may be passed between generations, either genetically or through the home environment, resulting in an auto-regressive process in earnings across generations.
Abstract: The authors are most grateful to the Academy of Finland for partial funding of this study under project number 52198. Two distinct explanations have been postulated for the observed positive correlation between incomes of children and those of their parents. Where credit constraints are prevalent, parental wealth may restrict investment in human capital of children. Alternatively, unobserved abilities that are positively associated with earnings may be passed between generations, either genetically or through the home environment, resulting in an auto-regressive process in earnings across generations. Empirical distinction between these two hypotheses has proved elusive. A model combining both features is outlined and estimated here. The data are drawn from a very remarkable and largely unexplored panel encompassing the entire Finnish

2 citations

Journal ArticleDOI
TL;DR: In this article, Pursell and Tower (1987) raise four issues with respect to certain results on DRC theory reported in Lucas (1984), and each of these points will be addressed sequentially.

2 citations

Journal ArticleDOI
TL;DR: The remarkable economic growth in die post-colonial period has been a mix of continued steady growdi of the already rich countries, growth at higher, catch-up rates by some odiers, and continued stagnation or worse by some of the preindustrial societies that have been left behind as discussed by the authors.
Abstract: During the forty year period 1950-1990 world population grew at an annual rate of just under 2%, and total production of goods and services grew at 4%. This means diat production per person grew at more than 2%, implying diat income per person more than doubled over these years. These figures refer to the entire world, rich and poor alike. I have not left out die communist countries or Africa or anyone else. Nodiing remotely like this has ever been seen before.1 The remarkable economic growth in die post-colonial period has been a mix of continued steady growdi ofthe already-rich countries, growth at higher, catch-up rates by some odiers, and continued stagnation or worse by some of the preindustrial societies that have been left behind. These differences have attracted a lot ofattention from economists. Detailed worldwide data sets have been created, and patterns have been sought that might reveal why some societies have thrived in this

2 citations


Cited by
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TL;DR: In this paper, the concept of social capital is introduced and illustrated, its forms are described, the social structural conditions under which it arises are examined, and it is used in an analys...
Abstract: In this paper, the concept of social capital is introduced and illustrated, its forms are described, the social structural conditions under which it arises are examined, and it is used in an analys...

31,693 citations

Journal ArticleDOI
TL;DR: The authors examined whether the Solow growth model is consistent with the international variation in the standard of living, and they showed that an augmented Solow model that includes accumulation of human as well as physical capital provides an excellent description of the cross-country data.
Abstract: This paper examines whether the Solow growth model is consistent with the international variation in the standard of living. It shows that an augmented Solow model that includes accumulation of human as well as physical capital provides an excellent description of the cross-country data. The paper also examines the implications of the Solow model for convergence in standards of living, that is, for whether poor countries tend to grow faster than rich countries. The evidence indicates that, holding population growth and capital accumulation constant, countries converge at about the rate the augmented Solow model predicts. This paper takes Robert Solow seriously. In his classic 1956 article Solow proposed that we begin the study of economic growth by assuming a standard neoclassical production function with decreasing returns to capital. Taking the rates of saving and population growth as exogenous, he showed that these two vari- ables determine the steady-state level of income per capita. Be- cause saving and population growth rates vary across countries, different countries reach different steady states. Solow's model gives simple testable predictions about how these variables influ- ence the steady-state level of income. The higher the rate of saving, the richer the country. The higher the rate of population growth, the poorer the country. This paper argues that the predictions of the Solow model are, to a first approximation, consistent with the evidence. Examining recently available data for a large set of countries, we find that saving and population growth affect income in the directions that Solow predicted. Moreover, more than half of the cross-country variation in income per capita can be explained by these two variables alone. Yet all is not right for the Solow model. Although the model correctly predicts the directions of the effects of saving and

14,402 citations

ReportDOI
TL;DR: In this paper, the authors show that the stock of human capital determines the rate of growth, that too little human capital is devoted to research in equilibrium, that integration into world markets will increase growth rates, and that having a large population is not sufficient to generate growth.
Abstract: Growth in this model is driven by technological change that arises from intentional investment decisions made by profit-maximizing agents. The distinguishing feature of the technology as an input is that it is neither a conventional good nor a public good; it is a nonrival, partially excludable good. Because of the nonconvexity introduced by a nonrival good, price-taking competition cannot be supported. Instead, the equilibrium is one with monopolistic competition. The main conclusions are that the stock of human capital determines the rate of growth, that too little human capital is devoted to research in equilibrium, that integration into world markets will increase growth rates, and that having a large population is not sufficient to generate growth.

12,469 citations

Posted Content
TL;DR: In this paper, the authors show that the stock of human capital determines the rate of growth, that too little human capital is devoted to research in equilibrium, that integration into world markets will increase growth rates, and that having a large population is not sufficient to generate growth.
Abstract: Growth in this model is driven by technological change that arises from intentional investment decisions made by profit maximizing agents. The distinguishing feature of the technology as an input is that it is neither a conventional good nor a public good; it is a nonrival, partially excludable good. Because of the nonconvexity introduced by a nonrival good, price-taking competition cannot be supported, and instead, the equilibriumis one with monopolistic competition. The main conclusions are that the stock of human capital determines the rate of growth, that too little human capital is devoted to research in equilibrium, that integration into world markets will increase growth rates, and that having a large population is not sufficient to generate growth.

11,095 citations