Jakob B Madsen
Biographic Data
| ID | 996200 |
|---|---|
| NAME | Jakob B Madsen |
| GIVEN NAMES | Jakob B |
| FAMILY NAME | Madsen |
| SIGNATURE | MADSEN J B |
| AFFILIATIONS | Australian Regenerative Medicine Institute |
| ORCID | 0000-0002-4952-3043 |
| VERIFIED | Yes |
| TOTAL WORKS | 36 |
| TOTAL CITATIONS | 48 |
| AUTHOR COUNT | 36 |
| EDITOR COUNT | 0 |
| FIRST PUBLICATION YEAR | 1991 |
| LATEST PUBLICATION YEAR | 2025 |
| H-INDEX | 4 |
Blood, education and economic Development: How the 19th century wars in Latin America Foiled its economic development
The mystery of misreported trade: A novel method to identify distorted trade figures
This research shows that misreporting of trade is rampant, which markedly reduces the quality of reported bilateral trade data. We devise a novel methodology to correct for misreported bilateral trade while accounting for the composition of product types and for trading partners. Based on bilateral data for 196 countries in the world at the product level over the period 1996–2017, we find that (i) our corrected trade data are significantly more r…
The aging society: Is growth reverting to pre-industrial levels in the 21st century
The long‐run investment effect of taxation in OECD countries
The gradually changing nature of production and the move away from tangible investment towards intangible investment over the past century suggest that the effects of the tax structure on investment need to be reassessed. To address this issue, we establish an endogenous growth model in which investment in tangible assets, R&D and education are influenced by different types of taxes. We test the long‐run implications of the model using annual dat…
When are instruments generated from geographic characteristics in bilateral relationships invalid
In their highly influential paper, “Does Trade Cause Growth?,” Frankel and Romer estimate a trade equation to predict bilateral trade shares, which are in turn aggregated to construct an instrument for trade openness in income regressions. The Frankel‐Romer approach has gained widespread popularity as a method to generate instruments for trade and many other outcome variables from estimated bilateral relationships. In this paper, we show analytic…
Wealth and inequality over eight centuries of British capitalism
International Technology Spillovers and Growth over the Past 142 Years: The Role of Genetic Proximity
This paper suggests genetic proximity, in addition to geographic proximity and imports, as a factor facilitating international knowledge transmission, where knowledge is measured as the stock of knowledge as well as research intensity to allow for the possibility that international knowledge spillovers have permanent productivity growth effects. Using data for 31 countries with diverse development paths over the period 1870–2011, the results show…
Wealth Inequality in the Long Run: A Schumpeterian Growth Perspective
This paper extends the analysis of the wealth–income ratio based on the neoclassical model in a Schumpeterian growth framework in which savings are channelled to both tangible and intangible capital investment. Using historical data for 21 OECD countries over the period 1860–2015, we find that the wealth–income ratio and, hence, wealth inequality, is negatively related to the rate of economic growth and positively related to the rates of investme…
What Has Driven the Great Fertility Decline in Developing Countries since 1960
Several developing countries are currently experiencing a significant fertility decline, however, academic economists have paid little attention to this transition. This paper seeks to explain the fertility transition by infant mortality, urbanisation, income, culture and educational attainment of females and males using annual data for 92 developing countries over the period 1960–2014. External instruments are used to deal with endogeneity. The …
The Rise and Fall of Exceptional Australian Incomes Since 1800
We gauge how productivity and factor endowments shaped the rise and fall of Australia's exceptional incomes using new measures of total factor productivity (TFP), which include natural resource inputs, in an accounting of income growth. Further, we explore the drivers of TFP growth. Pastoralism and mining had negative TFP externalities, and we incorporate these findings into a unified accounting of incomes, which distinguishes the roles of endowm…
Finance-Led Growth in the OECD since the Nineteenth Century: How Does Financial Development Transmit to Growth
It is well established in the literature that financial development (FD) is conducive to growth, and yet the channels through which FD affects growth are not well understood. Using a unique new panel data set for 21 OECD countries over the past 140 years, this paper examines the extent to which FD transmits to growth through ideas production, savings, fixed investment, and schooling. Unionization and agricultural share are used as instruments for…
Long-Run Commodity Prices, Economic Growth, and Interest Rates: 17Th Century to the Present Day
Industry diversity, competition and firm relatedness: The impact on employment before and after the 2008 global financial crisis
Industry diversity, competition and firm relatedness: the impact on employment before and after the 2008 global financial crisis. Regional Studies. This study investigates the extent to which indicators of external-scale economies impacted employment growth in Canada over the period 2004–11. It focuses on knowledge spillovers between firms while accounting for Marshallian specialization, Jacobs’ diversity and competition by industry, as well as r…
Inflation Targeting and Inflation Persistence
This paper argues that the adoption of an inflation target reduces the persistence of inflation. We develop the theoretical literature on inflation persistence by introducing a Taylor rule for monetary policy into a model of persistence and showing that inflation targets reduce inflation persistence. We investigate changes in the time series properties of inflation in seven countries that introduced inflation targets in the late 1980s or early 19…
Barriers to Prosperity: Parasitic and Infectious Diseases, IQ, and Economic Development
The Cambridge Economic History of Australia
Australia's economic history is the story of the transformation of an indigenous economy and a small convict settlement into a nation of nearly 23 million people with advanced economic, social and political structures. It is a history of vast lands with rich, exploitable resources, of adversity in war, and of prosperity and nation building. It is also a history of human behaviour and the institutions created to harness and govern human endeavour.…
Human Capital and the World Technology Frontier
This paper examines the productivity growth effects of educational attainment and its interaction with the distance to the world technology frontier, which is the percentage distance to the country with the highest total factor productivity (TFP) (the United Kingdom or United States), while allowing for the endogeneity of educational attainment in some of the estimates. For this purpose, a new annual data set for educational attainment is constru…
Imitation versus innovation in an aging society: International evidence since 1870
The housing slump and the great depression in the USA
Can Second-Generation Endogenous Growth Models Explain the Productivity Trends and Knowledge Production in the Asian Miracle Economies
Using data for six Asian miracle economies over the period from 1953 to 2006, this paper examines the extent to which growth has been driven by R&D and tests which second-generation endogenous growth model is most consistent with the data. The results give strong support to Schumpeterian growth theory but only limited support to semi-endogenous growth theory. Furthermore, it is shown that R&D has played a key role for growth in the Asian miracle …
Long-Run Convergence in Manufacturing and Innovation-Based Models
Most studies of comparative productivities fail to find evidence of convergence in OECD manufacturing despite major economic growth theories predicting convergence. Using manufacturing data for nineteen OECD countries over the period from 1870 to 2006, this study finds strong evidence of unconditional β-convergence as well as σ-convergence. Panel data estimates suggest that the convergence has been driven by domestic R&D, international R&D spillo…
The Prebisch-Singer Hypothesis: Four Centuries of Evidence
We employ a unique data set and new time-series techniques to reexamine the existence of trends in relative primary commodity prices. The data set comprises 25 commodities and provides a new historical perspective, spanning the seventeenth to the twenty-first centuries. New tests for the trend function, robust to the order of integration of the series, are applied to the data. Results show that eleven price series present a significant and downwa…
The Indian growth miracle and endogenous growth
The Dynamics of Labour's Income Shares and the Wage Curve–phillips Curve Controversy
Based on a re‐parameterised Blanchflower–Oswald model this paper uses long macro‐data from the OECD countries to discriminate between the Philips curve and the wage curve and examines whether there are any differences in wage dynamics between Europe and the United States. The evidence gives support for the Phillips curve and shows that wage dynamics are no different between the United States and Europe
Investment and Uncertainty: Precipitating the Great Depression in the United States
A severe collapse of fixed capital formation distinguished the onset of the Great Depression from other investment downturns between the world wars. Using a model estimated for the years 1890–2000, we show that the expected profitability of capital measured by Tobin's q , and the uncertainty surrounding expected profits indicated by share price volatility, were the chief influences on investment levels, and that heightened share price volatility …
Long-Run Commodity Prices, Economic Growth, and Interest Rates: 17Th Century to the Present Day
The Indian growth miracle and endogenous growth
Agricultural Crises and the International Transmission of the Great Depression
This article examines the role of the agricultural crisis in the international transmission of the Great Depression and assesses the direct and indirect macroeconomic effects of the agricultural price decline. Using panel data for 16 countries, it is shown that the decline in agricultural prices adversely affected the general price level, consumption and investment. Furthermore, it is shown that the agricultural price decline was an important veh…
Equity Prices, Productivity Growth and ‘The New Economy’
The sharp increase in equity prices over the 1990s was widely attributed to permanently higher productivity growth derived from the New Economy. This article establishes a rational expectations model of technology innovations and equity prices, which shows that under plausible assumptions, productivity advances can only have temporary effects on the fundamentals of equity prices. Using historical data on productivity of R&D capital, patent capita…
Wealth and inequality over eight centuries of British capitalism
Income Uncertainty and Consumer Spending during the Great Depression
General Equilibrium Macroeconomic Models of Unemployment: Can They Explain the Unemployment Path in the OECD
Journal Article General Equilibrium Macroeconomic Models of Unemployment: Can They Explain the Unemployment Path in the OECD? Get access Jakob B. Madsen Jakob B. Madsen University of Western Australia Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 108, Issue 448, 1 May 1998, Pages 850–867, https://doi.org/10.1111/1468-0297.00319 Published: 27 December 2001
Tests of rationality versus an “over optimist” bias
Wealth Inequality in the Long Run: A Schumpeterian Growth Perspective
This paper extends the analysis of the wealth–income ratio based on the neoclassical model in a Schumpeterian growth framework in which savings are channelled to both tangible and intangible capital investment. Using historical data for 21 OECD countries over the period 1860–2015, we find that the wealth–income ratio and, hence, wealth inequality, is negatively related to the rate of economic growth and positively related to the rates of investme…
Barriers to Prosperity: Parasitic and Infectious Diseases, IQ, and Economic Development
Imitation versus innovation in an aging society: International evidence since 1870
Investment and Uncertainty: Precipitating the Great Depression in the United States
A severe collapse of fixed capital formation distinguished the onset of the Great Depression from other investment downturns between the world wars. Using a model estimated for the years 1890–2000, we show that the expected profitability of capital measured by Tobin's q , and the uncertainty surrounding expected profits indicated by share price volatility, were the chief influences on investment levels, and that heightened share price volatility …
Industry diversity, competition and firm relatedness: The impact on employment before and after the 2008 global financial crisis
Industry diversity, competition and firm relatedness: the impact on employment before and after the 2008 global financial crisis. Regional Studies. This study investigates the extent to which indicators of external-scale economies impacted employment growth in Canada over the period 2004–11. It focuses on knowledge spillovers between firms while accounting for Marshallian specialization, Jacobs’ diversity and competition by industry, as well as r…
Inflation and Investment
This paper argues that inflation curbs investment because depreciations for tax purposes are at historical costs and because it renders firms liquidity constrained by lowering accounting profits of levered firms. Using panel data for the OECD countries, the empirical estimates show that investment in non‐residential buildings and structures and in machinery and equipment is strongly negatively related to inflation, which suggests that the low inf…
Formation of production expectations under risk
Formation of production expectations under risk
Tests of rationality versus an “over optimist” bias
The Macroeconomic Effects of a Switch From Direct to Indirect Taxes: An Empirical Assessment
This paper investigates the macroeconomic effects of switching the tax burden from direct to indirect taxes in an empirical model based on 22 OECD countries. The Engle‐Yoo three step procdure is employed to estimate both the short and long run effects of such a tax switch. The results reveal that a switich from direct to indirect taxes is likely to generate efficiency gans in the short run which lead to higher levels of aggragate output. However,…
New Keynesian Versus New Classical Theories of Aggregate Supply: Evidence from the Oecd Countries
Using annual and quarterly data for the OECD countries this paper tests four theories of aggregate supply, namely the sticky wage, the sticky price, the worker misperception and the producer misinformation models. The empirical estimates suggest that the short run aggregate supply curve is positively sloped as a result of price and wage stickiness. Furthermore, the slope of the aggregate supply curve is found to be a positive function of the rate…
General Equilibrium Macroeconomic Models of Unemployment: Can They Explain the Unemployment Path in the OECD
Journal Article General Equilibrium Macroeconomic Models of Unemployment: Can They Explain the Unemployment Path in the OECD? Get access Jakob B. Madsen Jakob B. Madsen University of Western Australia Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 108, Issue 448, 1 May 1998, Pages 850–867, https://doi.org/10.1111/1468-0297.00319 Published: 27 December 2001
Real Wages in Australia and Canada, 1870–1913: Globalization versus Productivity
Australia's and Canada's real wage experiences between 1870 and 1913 were distinctive. Faster productivity growth underpinned Canada's overtaking of Australia's wage levels. The globalization forces of migration and trade also shaped their comparative wages, principally by reducing wage growth in Canada. Immigration increased slightly Australia's real wages, but reduced wage levels in Canada, and tempered there the beneficial effects of rising pr…
Consumption, liquidity constraints, uncertainty and temptation: An international comparison
Agricultural Crises and the International Transmission of the Great Depression
This article examines the role of the agricultural crisis in the international transmission of the Great Depression and assesses the direct and indirect macroeconomic effects of the agricultural price decline. Using panel data for 16 countries, it is shown that the decline in agricultural prices adversely affected the general price level, consumption and investment. Furthermore, it is shown that the agricultural price decline was an important veh…
Income Uncertainty and Consumer Spending during the Great Depression
Inflation and Investment
This paper argues that inflation curbs investment because depreciations for tax purposes are at historical costs and because it renders firms liquidity constrained by lowering accounting profits of levered firms. Using panel data for the OECD countries, the empirical estimates show that investment in non‐residential buildings and structures and in machinery and equipment is strongly negatively related to inflation, which suggests that the low inf…
Investment and Uncertainty: Precipitating the Great Depression in the United States
A severe collapse of fixed capital formation distinguished the onset of the Great Depression from other investment downturns between the world wars. Using a model estimated for the years 1890–2000, we show that the expected profitability of capital measured by Tobin's q , and the uncertainty surrounding expected profits indicated by share price volatility, were the chief influences on investment levels, and that heightened share price volatility …
Equity Prices, Productivity Growth and ‘The New Economy’
The sharp increase in equity prices over the 1990s was widely attributed to permanently higher productivity growth derived from the New Economy. This article establishes a rational expectations model of technology innovations and equity prices, which shows that under plausible assumptions, productivity advances can only have temporary effects on the fundamentals of equity prices. Using historical data on productivity of R&D capital, patent capita…
The Indian growth miracle and endogenous growth
The Dynamics of Labour's Income Shares and the Wage Curve–phillips Curve Controversy
Based on a re‐parameterised Blanchflower–Oswald model this paper uses long macro‐data from the OECD countries to discriminate between the Philips curve and the wage curve and examines whether there are any differences in wage dynamics between Europe and the United States. The evidence gives support for the Phillips curve and shows that wage dynamics are no different between the United States and Europe
The Prebisch-Singer Hypothesis: Four Centuries of Evidence
We employ a unique data set and new time-series techniques to reexamine the existence of trends in relative primary commodity prices. The data set comprises 25 commodities and provides a new historical perspective, spanning the seventeenth to the twenty-first centuries. New tests for the trend function, robust to the order of integration of the series, are applied to the data. Results show that eleven price series present a significant and downwa…
Can Second-Generation Endogenous Growth Models Explain the Productivity Trends and Knowledge Production in the Asian Miracle Economies
Using data for six Asian miracle economies over the period from 1953 to 2006, this paper examines the extent to which growth has been driven by R&D and tests which second-generation endogenous growth model is most consistent with the data. The results give strong support to Schumpeterian growth theory but only limited support to semi-endogenous growth theory. Furthermore, it is shown that R&D has played a key role for growth in the Asian miracle …
Long-Run Convergence in Manufacturing and Innovation-Based Models
Most studies of comparative productivities fail to find evidence of convergence in OECD manufacturing despite major economic growth theories predicting convergence. Using manufacturing data for nineteen OECD countries over the period from 1870 to 2006, this study finds strong evidence of unconditional β-convergence as well as σ-convergence. Panel data estimates suggest that the convergence has been driven by domestic R&D, international R&D spillo…
The housing slump and the great depression in the USA
The Cambridge Economic History of Australia
Australia's economic history is the story of the transformation of an indigenous economy and a small convict settlement into a nation of nearly 23 million people with advanced economic, social and political structures. It is a history of vast lands with rich, exploitable resources, of adversity in war, and of prosperity and nation building. It is also a history of human behaviour and the institutions created to harness and govern human endeavour.…
Human Capital and the World Technology Frontier
This paper examines the productivity growth effects of educational attainment and its interaction with the distance to the world technology frontier, which is the percentage distance to the country with the highest total factor productivity (TFP) (the United Kingdom or United States), while allowing for the endogeneity of educational attainment in some of the estimates. For this purpose, a new annual data set for educational attainment is constru…
Imitation versus innovation in an aging society: International evidence since 1870
Inflation Targeting and Inflation Persistence
This paper argues that the adoption of an inflation target reduces the persistence of inflation. We develop the theoretical literature on inflation persistence by introducing a Taylor rule for monetary policy into a model of persistence and showing that inflation targets reduce inflation persistence. We investigate changes in the time series properties of inflation in seven countries that introduced inflation targets in the late 1980s or early 19…
Barriers to Prosperity: Parasitic and Infectious Diseases, IQ, and Economic Development
Finance-Led Growth in the OECD since the Nineteenth Century: How Does Financial Development Transmit to Growth
It is well established in the literature that financial development (FD) is conducive to growth, and yet the channels through which FD affects growth are not well understood. Using a unique new panel data set for 21 OECD countries over the past 140 years, this paper examines the extent to which FD transmits to growth through ideas production, savings, fixed investment, and schooling. Unionization and agricultural share are used as instruments for…
Long-Run Commodity Prices, Economic Growth, and Interest Rates: 17Th Century to the Present Day
Economics (36 works) · Macroeconomics (20 works) · Monetary Policy and Economic Impact (14 works) · Economic Growth and Productivity (13 works) · Fiscal Policy and Economic Growth (13 works) · Econometrics (12 works) · Monetary economics (10 works) · Political science (10 works) · Economic growth (9 works) · Labour economics (9 works)