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Endogenous Growth Model of Galor and Moav (2004): Analysis and Solution
[Modèle de croissance endogène de Galor et Moav (2004): analyse et résolution]

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  • Lutte-Garde Makwiza

    (Université de Kinshasa)

Abstract

This document presents a solution to the Galor and Moav (2004) model, focusing on the transition from physical capital accumulation to human capital accumulation during the development process. The analysis emphasizes the micro-foundations of household decisions, particularly the trade-off between bequests in the form of physical capital and investment in education. The solution highlights the crucial role of credit constraints and demonstrates how the economy converges to a steady state where human capital becomes the endogenous driver of growth. This work provides, to some extent, an understanding of the historical shift in productive forces and the evolution of inequalities during this structural transition.

Suggested Citation

  • Lutte-Garde Makwiza, 2026. "Endogenous Growth Model of Galor and Moav (2004): Analysis and Solution [Modèle de croissance endogène de Galor et Moav (2004): analyse et résolution]," Working Papers hal-05474923, HAL.
    • Handle: RePEc:hal:wpaper:hal-05474923
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