IDEAS home Printed from https://ideas.repec.org/p/bol/bodewp/194.html
   My bibliography  Save this paper

Implications of Solow's Growth Model: A Stocastic Approach

Author

Listed:
  • R. Cellini

Abstract

The aim of this paper is to analyse Solow's model, introducing the consideration that steady state labour productivity (in efficiency units) and its determinans are not constant values, for a country over a given period of time. They are, in fact, time series with unit roots. First, the paper shows that Solow's model can be interpreted as an error correction model and it could be consistent with the stochastic nature of the variables. Secondly, implications about integration and coinstegration of the relevant series are tested. We use data coming from four countries over the period 1960-88. The error correction mechanism implied by Solow's model never appers to have been operative: convergence of current productivity towards its (stochastic) steady state path does not emerge in any considered case.

Suggested Citation

  • R. Cellini, 1994. "Implications of Solow's Growth Model: A Stocastic Approach," Working Papers 194, Dipartimento Scienze Economiche, Universita' di Bologna.
    • Handle: RePEc:bol:bodewp:194
    as

    Download full text from publisher

    File URL: http://amsacta.unibo.it/5132/1/194.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bol:bodewp:194. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dipartimento Scienze Economiche, Universita' di Bologna (email available below). General contact details of provider: https://edirc.repec.org/data/sebolit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.