The class of growth models that incorporate nonrivalry and/or externalities implies that the size (scale) of an economy influences its growth rate. Ample empirical evidence exists to suggest that such implied scale effects are counter-factual. The objective of this paper is to develop a general growth model to examine the conditions under which balanced growth is void of scale effects.
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Paper provided by University of Washington, Department of Economics in its series Working Papers with number
97-01.