Rich transitional dynamics, physical capital, and technology intensity

• Type: Article in International Scientific Journal
• Date: 2017

Authors

Pedro Rui Mazeda Gil (Author) FEP; Almeida, A (Author) Other; Castro, SBSD (Author) FEP

Journal

Title: OXFORD ECONOMIC PAPERS-NEW SERIES

Vol. 69

Pages: 678-706

ISSN: 0030-7653

Publisher: Oxford University Press

Indexing

ISI Web of Knowledge - 5 Citations

Scopus - 5 Citations

Other information

Authenticus ID: P-00K-WKR

DOI: 10.1093/oep/gpw045

Abstract (EN): This paper develops a non-scale growth model with physical capital and two types of R&D under a lab-equipment specification, where both the intensive and extensive growth margins are fully endogenous. We study analytically the long-run equilibrium and transitional dynamics properties of the model, and establish meaningful sufficient conditions for saddle-path stability. We relate the different combinations of initial conditions of the dynamical system with the observation of monotonic versus non-monotonic transitional dynamics. Our model is able to predict monotonic, hump-shaped, and inverted hump-shaped trajectories, therefore encompassing the diverse convergence behaviour observed in the empirical data on modern growth experiences.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 29