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Is the Asymptotic Speed of Convergence a Good Proxy for the Transitional Growth Path?

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Author Info
CHRIS PAPAGEORGIOU
FIDEL PEREZ-SEBASTIAN

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Abstract

This paper compares transitional dynamics in two alternative R&D non-scale growth models, one with endogenous human capital and the other without. We show that focusing only on the asymptotic speed of convergence to discriminate between the two models' performance can be misleading. Our analysis suggests that a careful study of the entire adjustment paths predicted by alternative growth models starting far away from the balanced-growth path is required in order to successfully discriminate among them. Copyright 2007 The Ohio State University.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.0022-2879.2007.00001.x
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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Money, Credit and Banking.

Volume (Year): 39 (2007)
Issue (Month): 1 (02)
Pages: 1-24
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Handle: RePEc:mcb:jmoncb:v:39:y:2007:i:1:p:1-24

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879

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