Diverging Population and Endogenous Growth in a Model of Meaningless Trade
The endogenous growth literature raises the possibility that countries may grow without bound in terms of per capita income, and that they may do so at different rates. This posibility also exists in neoclassical growth models with diverging populations- populations tha grow at different rates. In both cases, however, this means that international inequality of per capita incomes will not only exist but also get wese over time This paper examiens that possibility within a very simple one-sector model that allows for both diverging populations and endogenous growth.
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