IDEAS home Printed from
   My bibliography  Save this paper

Endogenous Growth Models: Jones Vs Romer the Path to a Fully-Fledged Dynamic Analysis


  • Jalles, João Tovar


The last two decades were marked by a high increase in economic growth research, namely related to three important issues as stated in Klenow et al. [1997]: world growth, country growth and dispersion in income levels. The Charles Jones’ [2002] technique to solve endogenous growth models relies on the two-step approach, which is in fact a clever way to study the dynamic behaviour of the usual two production factors of this type of models, technology and capital. However, he does that sequentially, therefore reducing the general scope of the model, as it is a special case of a broader version developed by David Romer [2001]. Romer’s general case analyse the dynamic behaviour more closely and, more importantly, allowing for a simultaneous analysis of the dynamics of the endogenous factors, which provide additional insights. The aim of this paper is to tackle the differences between the two endogenous models as an exercise to see expost exogenous shocks’ implications to the variables of interest. More specifically, in addition to the strictly theoretical analysis of some dynamic properties of the model, by programming difference equations in discrete time, one is also able to simulate and examine how the model will respond to shocks that one administer to it, on an ad-hoc basis – deterministic simulation.

Suggested Citation

  • Jalles, João Tovar, 2007. "Endogenous Growth Models: Jones Vs Romer the Path to a Fully-Fledged Dynamic Analysis," FEUNL Working Paper Series wp522, Universidade Nova de Lisboa, Faculdade de Economia.
  • Handle: RePEc:unl:unlfep:wp522

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:unl:unlfep:wp522. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sean Story). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.