An Endogenous Growth Model with Expanding Ranges of Consumer Goods and Producer Durables
This paper constructs a growth model with the feature that the range of differentiated consumption goods and the range of specialized producer durables are both endogenously determined. The author shows that this feature allows the domestic investment rate to be closely associated with the domestic saving rate even when international financial markets are integrated. He also argues that this feature is important in explaining the observed cross-country diversity in growth performance and saving behavior. Copyright 1998 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
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Volume (Year): 39 (1998)
Issue (Month): 2 (May)
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