This paper measures the contribution of information productivity to the economic growth by a revised Cobb-Douglas production function which takes capital, labor and information as three elements. The result shows that information productivity contributes the most to the economic growth. Meanwhile, we also compare China with other high income countries and find that information input has stronger multiplier effect in China than high income countries.
This paper studies the risk‐free rate in an overlapping generations economy with bequests. It is shown that the risk‐free rate depends on risk aversion, the elasticity of intertemporal substitution, the share of wealth invested in human wealth, life expectancy, and the preference for bequests. In a standard life‐cycle context, mortality increases the subjective time rate of discount, and thus increases the compensation required to postpone consumption. This latter effect is offset in a bequest‐driven model of the type considered here, leading to much more powerful income effects. In this sense, the model provides a bequest‐motive explanation for the risk‐free rate puzzle put forward by Weil in 1989.