The paper analyses a two-sector model of endogenous growth with two common features of economic development: stages of … sustained growth and underdevelopment traps. The model also demonstrates the transitional issues of a temporary underdevelopment … trap, seemingly sustainable growth, and a slowdown in productivity growth. The temporary underdevelopment trap occurs when …

This paper studies the effects of distortionary taxes and public investment in an endogenous growth OLG model with … knowledge transmission. Fiscal policy affects growth in two respects: First, work time reacts to variations of prospective tax … generations, and are not necessarily growth-improving with respect to a pure private system. Non-Ramsey policies that shift the …

Transitional dynamics in growth models have been subject to much attention recently. With a few exceptions, existing …

endogenous economic growth. In the 1st part of the paper the basics of the MWR method are described. Attention is mainly … part of the paper is devoted to the setup of a model of endogenous growth with human capital accumulation and the … of the problem which eliminates the growth in variables is then presented and the MWR method is used to solve the model …

We calibrate an infinite-horizon model with endogenous growth and unemployment on actual data from the largest … lump-sum transfers, reducing labor taxes and unemployment subsidies is beneficial to both employment and growth, while …

The paper develops a Romer-type growth model with a research sector, a manufacturing sector, and a financial sector and … shows that inflation has an adverse effect on economic growth. Higher inflation increases the incentives for agents to use … sector and shifts resources out of other sectors of the economy including research, the engine of growth, into the financial …

profits. Balanced growth paths, transitional dynamics and welfare costs are computed. Our results indicate that the 2000 …

aggregate relations. This paper establishes a bridge between the aggregation and the inequality and growth literature by … applying a log-linear aggregation method to a simple heterogeneous AK growth model. The aggregation effect is explicitly … captured in the growth equation by the changes of the mean logarithmic deviation (MLD or Theil’s second measure) of the income …

distribution, growth and international specialization. The model is explored both for the steady- state properties and the … transitory dynamics of integrated economies. Income inequality affects the patterns of growth and international specialization as …

utility functions are both in this class. The implications of the PRA utility functions are explored in the context of growth … rates if they start with different levels of capital stock. Thus diversity in growth performance across countries occurs …