Path-dependent economic growth with technological trajectory
AbstractThis paper develops an integrated model of neoclassical and endogenous growth, which accounts for both income inequalities across countries and the convergence hypothesis, while all the growth stylized facts are satisfied. The model in this paper assumes that an economy industrializes in two stages. In the first stage, the economy starts industrialization through factor accumulation (the Solow stage); and after sufficient factor accumulation, it switches to the second stage of endogenous growth through innovation (the AK stage). Therefore, it becomes crucial to determine when switching from the Solow to the AK stages is implemented. We model this switching problem as a two-stage optimal control and show that the growth rate declines during the Solow stage, while in the AK stage it becomes constant. In addition, we draw several policy implications.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.
Volume (Year): 19 (2010)
Issue (Month): 6 ()
Contact details of provider:
Web page: http://www.tandfonline.com/GEIN20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Harada, Tsutomu, 2010. "Path-dependent economic progress and regress: The negative role of subsidies in economic growth," Structural Change and Economic Dynamics, Elsevier, vol. 21(3), pages 197-205, August.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.