A recent article by Prof. Dr. Torben Klarl has been published in Economica, a leading international journal of economics published by the Department of Economics at the London School of Economics and Political Science (LSE). Since the beginning of the third funding phase of CRC 1342, he has contributed to Project A10, "Causal Impacts of Pension Reforms on Socioeconomic and Political Outcomes". The article has been published on an Open Access basis and is freely available to readers worldwide.
[https://onlinelibrary.wiley.com/doi/10.1111/ecca.70060]
Abstract:
This paper investigates the impact of creativity on technological advancement, long-term economic development, and social welfare, where creativity is determined endogenously through interactions within social networks. The analysis shows that an economy remains stagnant, exhibiting neither networking nor long-term growth, when the size of the creative class falls below a positive threshold. Once this threshold is exceeded, active networking between creative and non-creative individuals emerges, fostering sustained technological progress and income growth. The model is calibrated and used to simulate the transition from stagnation to sustained growth. The results indicate meaningful welfare gains from such a transition, driven by the cumulative effects of technological progress facilitated by networking.
Economica is an international journal covering research in all branches of economics published on behalf of the London School of Economics and Political Science Economics Department (LSE). It welcomes high-quality contributions from all parts of the international research community which are of interest to general readers. It is a leading economics journal, appearing high in the published citation rankings.
Torben Klarl is Professor of Macroeconomics at the University of Bremen. His research interests include artificial intelligence, climate change, political economy, development economics, and economic growth.
Contact:
Prof. Dr. Torben Klarl
CRC 1342: Global Dynamics of Social Policy, Faculty of Business Studies and Economics
Max-von-Laue-Straße 1
28359 Bremen
Phone: +49 421 218-66560
E-Mail: tklarl@uni-bremen.de
