This paper constructs a two-country stochastic growth model in which neutraland investment-specic technology shocks are nonstationary but cointegrated acrosseconomies. It uses this model to interpret data showing that while real investmenthas grown faster than real consumption in the United...

The search for the main determinants of economic growth of nations as well as the present lack of an explanatory model for macroeconomic phenomena necessarily lead us to the need of a synthesis or explanatory theory. In this sense, the main theoretical findings base on the basic neoclassical...