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Testing Creative Destruction in an Opening Economy : the Case of the South African Manufacturing Inudstries

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  • Philippe Aghion
  • Johannes Fedderke
  • Peter Howitt
  • Chandana Kularatne
  • Nicola Viegi

Abstract

We study a Lucas (1978) “fruit-tree” economy under the assumption that agents are Choquet expected utility (CEU) rather than standard expected utility (EU) decision makers. The agents’ nonadditive beliefs about the economy’s stochastic dividend payment process may thus express ambiguity attitudes and accommodate violations of Savage’s sure-thing principle as elicited by Ellsberg (1961). As our […]
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  • Philippe Aghion & Johannes Fedderke & Peter Howitt & Chandana Kularatne & Nicola Viegi, 2008. "Testing Creative Destruction in an Opening Economy : the Case of the South African Manufacturing Inudstries," Documents de Travail de l'OFCE 2008-23, Observatoire Francais des Conjonctures Economiques (OFCE).
    • Handle: RePEc:fce:doctra:0823
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    1. Abhijit Banerjee & Sebastian Galiani & Jim Levinsohn & Zoë McLaren & Ingrid Woolard, 2008. "Why has unemployment risen in the New South Africa?1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 16(4), pages 715-740, October.
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    Cited by:

    1. Torfinn Harding & Jørn Rattsø, 2010. "Industrial labour productivities and tariffs in South Africa," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 18(3), pages 459-485, July.
    2. Jørn Rattsø & Hildegunn E. Stokke, 2009. "Trade barriers to growth in South Africa: Endogenous investment-productivity-trade interaction," DEGIT Conference Papers c014_010, DEGIT, Dynamics, Economic Growth, and International Trade.
    3. Fedderke, Johannes & Klitgaard, Robert, 2013. "How Much Do Rights Matter?," World Development, Elsevier, vol. 51(C), pages 187-206.
    4. Jørn Rattsø & Torfinn Harding, 2009. "Looking Abroad, but Lagging Behind: How the World Technology Frontier Affects South Africa," Working Paper Series 10209, Department of Economics, Norwegian University of Science and Technology.
    5. Torfinn Harding & Jørn Rattsø, 2009. "Industrial labor productivities and tariffs in South Africa. Identification based on multilateral liberalization reform," Discussion Papers 585, Statistics Norway, Research Department.

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