Endogenous Growth, Semi-endogenous Growth... or Both? A Simple Hybrid Model
Type
working paper
Author(s)
Abstract (De)
First generation endogenous growth models had the counterfactual implication that the long-term growth of per-capita GDP increased with the population size. Two influential growth paradigms, the semi-endogenous and the second generation fully endogenous, eliminated this strong scale effect. Both solutions have useful aspects and
insights, but very different policy implications. This paper combines both approaches into a single hybrid model class, and shows that no matter the weight assigned to each paradigm, the long-run predictions of the semi-endogenous policy dominate with high enough population growth rates, while the long-run predictions of the fully endogenous
policy dominate at low population growth rates.
insights, but very different policy implications. This paper combines both approaches into a single hybrid model class, and shows that no matter the weight assigned to each paradigm, the long-run predictions of the semi-endogenous policy dominate with high enough population growth rates, while the long-run predictions of the fully endogenous
policy dominate at low population growth rates.
Language
English
HSG Classification
contribution to scientific community
Subject(s)
Eprints ID
250657
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open.access
Name
MPRA_paper_77775.pdf
Size
182.52 KB
Format
Adobe PDF
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