Diego, Romero-Avila - In: The B.E. Journal of Macroeconomics 6 (2006) 1, pp. 1-40
In this paper we revisit the work of Jones (1995a) which provided strong evidence against the empirical validity of AK-type models that predict increasing output growth rates as a result of permanent movements in the physical investment rate. For that purpose, we employ recently developed unit...