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Life-cycle savings, bequest, and a diminishing impact of scale on growth

  • Dalgaard, Carl-Johan
  • Jensen, Martin Kaae

The present paper shows that the savings motive critically affects the size and sign of scale effects in standard endogenous growth models. If the bequest motive dominates, the scale effect is positive. If the life-cycle motive dominates, the scale effect is ambiguous and may even be negative.

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Article provided by Elsevier in its journal Journal of Economic Dynamics and Control.

Volume (Year): 33 (2009)
Issue (Month): 9 (September)
Pages: 1639-1647

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Handle: RePEc:eee:dyncon:v:33:y:2009:i:9:p:1639-1647
Contact details of provider: Web page: http://www.elsevier.com/locate/jedc

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