Angus C. Chu’s research while affiliated with University of Macau and other places

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Publications (85)


Optimal patent policy and wealth inequality in a Schumpeterian economy
  • Article

December 2024

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1 Read

Journal of Macroeconomics

Angus C. Chu

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Chih-Hsing Liao

Figure 1. Simulated trend of hominin brain size.
Human brain evolution in a Malthusian economy
  • Article
  • Full-text available

November 2024

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25 Reads

Macroeconomic Dynamics

Why did the human brain evolve? This study develops a Malthusian growth model with heterogeneous agents and natural selection to explore the evolution of human brain size. We find that if the cognitive advantage of a larger brain dominates its higher metabolic costs, then the average brain size increases over time, which is consistent with the rising trend in human brain size that started over 2 million years ago. Furthermore, an improvement in hunting-gathering productivity (e.g., the discovery of using stone tools and fire in hunting animals and cooking food) helps to trigger this human brain size evolution. As the average brain size increases, the average level of hunting-gathering productivity also rises over time. Quantitatively, our model is able to replicate the trend in hominin brain evolution over the last 10 million years.

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Figure 2. Dynamics of population growth. Figure plots the following three scenarios: case (a) plots the population growth rate given by (28); case (b) plots the population growth rate given by (28), (32), and then (34); and case (c) plots the population growth rate given by (28), (32), (34), and then (36).
Figure A1. Labor market. Figure plots (A8) and shows that there can be a gradual transition (i.e., l F > 0) or an immediate transition (i.e., l F > 0) from agriculture to industrial production.
Robustness tests
From Neolithic Revolution to industrialization

May 2023

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121 Reads

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7 Citations

Macroeconomic Dynamics

This study develops a Malthusian model for the evolution of human society from hunting-gathering to agriculture and from agriculture to industrial production. Human society evolves across these stages as the population grows. However, under endogenous population growth, the population may stop growing at any stage. If it fails to reach the first threshold, the population remains as hunter-gatherers. If it reaches the first threshold, an agricultural society emerges. Then, if the population fails to reach the industrial threshold, it remains in an agricultural Malthusian trap without experiencing industrialization. Interestingly, high agricultural productivity triggers not only the Neolithic Revolution but also the subsequent industrialization. Using cross-country data to test this result, we employ an index of prehistoric biogeographic conditions that affect agricultural productivity as an instrument for the timing of transitions to agriculture and find that an earlier transition to agriculture has a positive effect on industrialization in the modern era.


Phase diagram for ϕ ∈ (0,1)
Phase diagram for ϕ = 1
Natural selection and Neanderthal extinction in a Malthusian economy

February 2023

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54 Reads

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3 Citations

Journal of Population Economics

Why are Homo sapiens the only human species living on this planet? Homo sapiens have lived on this planet for about 300,000 years. During most of their existence, early modern humans shared this planet with other archaic humans, such as Neanderthals and Denisovans. Why did the other archaic humans become extinct? To explore this question, this study develops a Malthusian model with natural selection of human species to explore how population dynamics of one group of humans may cause the extinction of another group. In my model, different groups of humans engage in hunting-gathering. The larger group of humans can occupy more land. Therefore, the expansion of one population causes the other population to shrink in a Malthusian economy. Which human population shrinks or even becomes extinct depends on structural parameters in the Malthusian model.


Agricultural revolution and industrialization

May 2022

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61 Reads

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31 Citations

Journal of Development Economics

This study explores how agricultural technology affects the endogenous takeoff of an economy in the Schumpeterian growth model. Due to the subsistence requirement for agricultural consumption, an improvement in agricultural technology reallocates labor from agriculture to the industrial sector. Therefore, agricultural improvement expands firm size in the industrial sector, which determines innovation and triggers an endogenous transition from stagnation to growth. Calibrating the model to data, we find that without the reallocation of labor from agriculture to the industrial sector in the early 19th century, the takeoff of the US economy would have been delayed by about four decades.


Citations (69)


... 7 SeeAshraf and Galor (2018) for a comprehensive survey of this literature. 8Chu, Peretto and Furukawa (2024) explore the endogenous transition of human society from multiple states to a unified empire in an agricultural Malthusian economy. 9 Appendix A considers a more general land-division rule. ...

Reference:

Human brain evolution in a Malthusian economy
Political fragmentation versus a unified empire in a Malthusian economy
  • Citing Article
  • June 2024

Journal of Economic Behavior & Organization

... In the R&D sector, when a successful project is produced, it is supplied to a new monopoly firm, which patents it. In addition to the baseline model from [2,3], the Tourism sector draws from the domestic aggregate output, consumed by the inflow of tourists, exogenous to the domestic economy (following [16]). It allows the R&D sector to benefit from a higher likelihood of successful R&D innovations. ...

Dynamic effects of tourism shocks on innovation in an open-economy Schumpeterian growth model
  • Citing Article
  • December 2023

Economic Modelling

... Specifically, Piketty and his coauthors challenged the reliance on technology in explaining inequality changes [21][22][23]. Based on evidence from France, Australia, Canada, Britain, and the US in the 20 th century, they find that social norms (implicit rules) and institutional arrangements (explicit rules) in distribution (e.g., union) and redistribution (e.g., taxation) can play more important roles in shaping inequality [24][25][26]. Nevertheless, most studies are based on postwar evidence, and few have been devoted to long-term interdependence between growth and inequality over several centuries [25]. ...

Innovation and inequality from stagnation to growth
  • Citing Article
  • October 2023

European Economic Review

... Export influences economic growth according to many theories and researchers (Sultanuzzaman, 2019;Marjit & Ray 2017;Hagemejer & Muck 2019;Yilmaz, 2022). The studies conducted prove that a country's International Entrepreneurship Review R I E high export has a positive impact on the higher growth rate of country's output per capita (Chu et al., 2023). Because of the globalization process, international trade, especially export has been treated as the main factor that impacts economic growth. ...

Export-led takeoff in a Schumpeterian economy
  • Citing Article
  • July 2023

Journal of International Economics

... Archaeological evidence suggests that Homo sapiens, who had been hunter-gatherers for the majority of their existence, began to transition to agriculture only 12,000 years ago (Chu & Xu, 2023). During this period, known as the Neolithic, humans discovered that they could control the growth and reproduction of specific plants and animals. ...

From Neolithic Revolution to industrialization

Macroeconomic Dynamics

... 5 A seminal study in this literature by Galor and Moav (2002) explores how natural selection and the quality-quantity trade-off of children affect the transition of an economy from pre-industrial stagnation to modern economic growth; 6 see also the interesting studies by Lagerlof (2007) and Dalgaard and Strulik (2015) on the selection of human body mass, Galor and Michalopoulos (2012) on the selection of entrepreneurial spirit, Galor and Ozak (2016) on the selection of future-oriented mindset, and Galor and Klemp (2019) on the selection of child quality. 7 A recent study by Chu (2023) explores natural selection and the extinction of archaic human species in a hunting-gathering Malthusian economy. Another related study by Chu and Xu (2024) explores the subsequent transitions of human society from hunting-gathering to agriculture and then from agriculture to industrial production also in a Malthusian economy. ...

Natural selection and Neanderthal extinction in a Malthusian economy

Journal of Population Economics

... Similarly, Murati-Leka and Fetai (2023) support the finding of Islam (2015) that a large share of government spending to support businesses results in high innovativeness among ICT firms in Kosovo. Also, government subsidies for R&D increases innovation and growth in the United States (Chu, 2023). Although female-led firms are less innovative; Audretsch et al. (2022) find that female entrepreneurs become more innovative as a country's fiscal freedom improves. ...

Should the government subsidize innovation or automation?
  • Citing Article
  • April 2022

Macroeconomic Dynamics

... Traditionally lagging behind in adopting digital technologies, the sector is currently digitalizing at a rapid pace [1][2][3][4]. Since its start in the 1980s and 1990s, digitalization in agriculture has evolved from single computer and limited information sources to more advanced systems [5][6][7][8]. These advancements in digitalization have led to and enabled smart farming [9][10][11]. ...

Agricultural revolution and industrialization
  • Citing Article
  • May 2022

Journal of Development Economics

... Patents serve as a storehouse of innovative solutions, documenting significant technological advancements and milestones safeguarded as intellectual property and informing subsequent innovations. 17,18 Alternative methodologies, including design thinking and lean innovation, are effective solely within iterative and user-centred environments, as they need more systematic instruments to address deep technical conflicts frequently encountered in materials science and engineering. The innovation trajectory of SMPs demonstrates that most efforts are centred on industrialised nations, whereas emerging markets still need to be explored. ...

Patent policy and economic growth: A survey
  • Citing Article
  • December 2021

Manchester School

... The existing literature on Schumpeterian innovations is based exclusively on the assumption that new entrepreneurs can create new ideas to develop products that often disrupt an existing market (Mathews, 2018;Chu et al., 2020;Feng, 2019). However, "creative destruction," as championed by Schumpeter, manifests not only in the application of new ideas but also through appropriate and innovative service delivery to society. ...

How Minimum Wages Affect Automation and Innovation in a Schumpeterian Economy
  • Citing Article
  • January 2021

SSRN Electronic Journal

Angus C. Chu

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Haichao Fan

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[...]

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Chih-Hsing Liao