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Growth Volatility and Technical Progress: A Simple Rent-seeking Model

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Author Info

  • Charles Leung

    ()

  • Sam Tang
  • Nicolaas Groenewold

    ()

Abstract

Recent empirical evidence demonstrates that a higher level of technical progress is associated with a lower level of growth volatility and higher expected economic growth. This paper builds a simple growth model which combines the insights of Angeletos and Kollintzas (2000) and Tse (2000, 2001, 2002) with endogenous productivity growth and rent-seeking behavior to account for these stylized facts. Our model also complements the literature that focuses on the heterogeneity of different agents. Future research directions are also discussed.

(This abstract was borrowed from another version of this item.)

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File URL: http://hdl.handle.net/10.1007/s00712-005-0162-6
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Bibliographic Info

Article provided by Springer in its journal Journal of Economics.

Volume (Year): 88 (2006)
Issue (Month): 2 (08)
Pages: 159-178

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Handle: RePEc:kap:jeczfn:v:88:y:2006:i:2:p:159-178

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Web page: http://www.springerlink.com/link.asp?id=108909

Related research

Keywords: volatility of economic growth; technical progress; rent-seeking; stabilization policy; institution; E30; O11; O40;

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References

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Citations

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Cited by:
  1. Tang, Sam Hak Kan & Groenewold, Nicolaas & Leung, Charles Ka Yui, 2008. "The link between institutions, technical change and macroeconomic volatility," Journal of Macroeconomics, Elsevier, vol. 30(4), pages 1520-1549, December.
  2. Shuanglin Lin & Wei Zhang, 2009. "The effect of corruption on capital accumulation," Journal of Economics, Springer, vol. 97(1), pages 67-93, May.
  3. Chu, Angus C. & Leung, Charles Ka Yui & TANG, C. H. Edward, 2012. "Intellectual property rights, technical progress and the volatility of economic growth," MPRA Paper 38132, University Library of Munich, Germany.
  4. Michio Naoi & Miki Seko & Kazuto Sumita, 2010. "Community Rating, Cross Subsidies and Underinsurance: Why so many Households in Japan do not Purchase Earthquake Insurance," The Journal of Real Estate Finance and Economics, Springer, vol. 40(4), pages 544-561, May.

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