Jaime, Alonso-Carrera; Jordi, Caballé; Xavier, Raurich - In: The B.E. Journal of Macroeconomics 15 (2015) 1, pp. 42-42
We analyze the transitional dynamics of an economic model with heterogeneous consumption goods where convergence is driven by two different forces: the typical diminishing returns to capital and the dynamic adjustment in consumption expenditure induced by the variation in relative prices. We...