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Equilibrium, convergence, and capital mobility in neoclassical models of growth

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  • Birchenall, Javier A.

Abstract

We study convergence in economies integrated by capital trade. Equilibrium generates transitional dynamics even in the absence of internal adjustment costs or borrowing constraints. Trade lowers the speed of convergence of capital-importing economies but increases the convergence of capital-exporting economies.

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  • Birchenall, Javier A., 2008. "Equilibrium, convergence, and capital mobility in neoclassical models of growth," Economics Letters, Elsevier, vol. 99(1), pages 10-13, April.
    • Handle: RePEc:eee:ecolet:v:99:y:2008:i:1:p:10-13
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    References listed on IDEAS

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    1. Cazzavillan, Guido & Olszewski, Krzysztof, 2011. "Skill-biased technological change, endogenous labor supply and growth: A model and calibration to Poland and the US," Research in Economics, Elsevier, vol. 65(2), pages 124-136, June.

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