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Prometheus Bound: Polarization Is Possible In The Neoclassical Growth Model

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Author Info
Efthymios G. Tsionas
Loukas Theocharis
Abstract

The paper demonstrates that the standard neoclassical model of stochastic growth in the absence of any other modifications is consistent with club convergence contrary to the analysis in Cetorelli (2002, Journal of Economic Dynamics and Control, 27, pp. 29-50). In that sense, it is not necessary to augment the model with a probability of adverse shocks that is inversely related to aggregate capital stock or provide other modifications. Copyright © 2008 The Authors.

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Article provided by Blackwell Publishing in its journal Metroeconomica.

Volume (Year): 59 (2008)
Issue (Month): 2 (05)
Pages: 203-211
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Handle: RePEc:bla:metroe:v:59:y:2008:i:2:p:203-211

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This page was last updated on 2009-12-19.

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