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Life-cycle savings, bequest, and a diminishing impact of scale on growth

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Author Info
Dalgaard, Carl-Johan
Jensen, Martin Kaae

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Abstract

The present paper shows that the savings motive critically affects the size and sign of scale effects in standard endogenous growth models. If the bequest motive dominates, the scale effect is positive. If the life-cycle motive dominates, the scale effect is ambiguous and may even be negative.

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File URL: http://www.sciencedirect.com/science/article/B6V85-4VWHVX8-1/2/9a8927b3b4cabeb2b95cf9aa52b67312
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Publisher Info
Article provided by Elsevier in its journal Journal of Economic Dynamics and Control.

Volume (Year): 33 (2009)
Issue (Month): 9 (September)
Pages: 1639-1647
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Handle: RePEc:eee:dyncon:v:33:y:2009:i:9:p:1639-1647

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Web page: http://www.elsevier.com/locate/jedc

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Related research
Keywords: Overlapping generations Endogenous growth Scale effects;

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This page was last updated on 2009-12-5.

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