TANYA ARAÃJO () (ISEG (School of Economics and Management), Technical University of Lisbon (TULisbon), Rua do Quelhas, 6 1200-781 Lisboa, Portugal) MIGUEL ST. AUBYN (ISEG (School of Economics and Management), Technical University of Lisbon (TULisbon), Rua do Quelhas, 6 1200-781 Lisboa, Portugal)
Additional information is available for the following
registered author(s):
Endogenous, ideas-led growth theory and the literature on agent-based modeling with neighborhood effects are crossed. In an economic overlapping generations framework, it is shown how social interactions and neighborhood effects are of vital importance in the endogenous determination of the long run number of skilled workers and therefore of the growth prospects of an economy. Neighborhood effects interact with the initial distribution of skilled agents across space and play a key role in the long run stabilization of the number of skilled individuals. Our model implies a tendency toward segregation, with a possibly positive influence on growth, if team effects operate. The long run growth rate is also shown to depend on the rate of time preference. Initial circumstances are of vital importance for long run outcomes. A poor initial education endowment will imply a long run reduced number of skilled workers and a mediocre growth rate, so there is no economic convergence tendency. On the contrary, poor societies will grow less, or will even fall into a poverty trap, and will diverge continuously from richer ones.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Durlauf, Steven N., 2004.
"Neighborhood effects,"
Handbook of Regional and Urban Economics,
in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 50, pages 2173-2242
Elsevier.
[Downloadable!] (restricted)
Jones, Charles I., 2005.
"Growth and Ideas,"
Handbook of Economic Growth,
in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 16, pages 1063-1111
Elsevier.
[Downloadable!] (restricted)
Other versions:
Charles I. Jones, 2004.
"Growth and Ideas,"
NBER Working Papers
10767, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)