Hellwig, Martin F; Irmen, Andreas - C.E.P.R. Discussion Papers - 2001
-equilibrium model with endogenous productivity growth. For real wage growth above laissez-faire levels, we obtain steady …-state equilibria in which productivity grows at the same rate as wages, the real interest rate is below the laissez-faire level, and so … constant rate equal to the difference between the growth rates of productivity and output. This contrasts with the view that …