Capital Spillovers and Growth Regime Selection
Type
conference paper
Date Issued
2026
Author(s)
Abstract
Can capital accumulation sustain endogenous growth without imposing knife-edge linearity of aggregate technology in capital? This aper shows that it can, even when productivity is simultaneously shaped by diminishing-return capital spillovers. In a model with hybrid capital spillovers—a diminishing-return component and an AK-type component—the long-run dynamics exhibit growth regime selection in capitalbased environments. The economy converges to fully endogenous growth if and only if the equilibrium saving rate exceeds a critical threshold; otherwise it converges to a semiendogenous path tied to population growth. The result provides a tractable criterion for when an AK-type growth engine survives in the presence of diminishing spillovers, turning the AK versus semi-endogenous distinction into an equilibrium outcome governed by saving behavior and spillover structure. A calibration using U.S. national ccounts data suggests that the economy operates in the endogenous regime, though relatively close to the regime boundary.
Language
English
HSG Classification
contribution to education
Refereed
No
Pages
10
Event Title
International Workshop on Economic Growth and Macroeconomic Dynamics
Event Location
SKEMA Business School, Sophia Antipolis (Nice) Campus, France
Event Date
July 2-3, 2026
Subject(s)
Division(s)
File(s)![Thumbnail Image]()
Name
Capital Spillovers.pdf
Size
410.14 KB
Format
Adobe PDF
Checksum (MD5)
b2a791409974dba89fb9ce7ed94a9b18