This paper studies the transitional dynamics in a quality ladder model of endogenous growth in which North-South trade … incorporated into both imitative and innovative processes, which in turn drive domestic technological progress. International trade … numerically to illustrate the transition paths and welfare effects of Southern trade liberalization. While particular welfare …

This paper studies the transitional dynamics in a quality ladder model of endogenous growth in which North-South trade … incorporated into both imitative and innovative processes, which in turn drive domestic technological progress. International trade … numerically to illustrate the transition paths and welfare effects of Southern trade liberalization. While particular welfare …

improvements in technology, investment and consumption booms, and faster trend growth, reminiscent of the U.S. economy during the …This paper develops a stochastic endogenous growth model that exhibits “excess volatility” of equity prices because … speculative agents overreact to observed technology shocks. When making forecasts about the future, speculative agents behave like …

real factor prices (the dual) can diverge from each other as well as from true technology growth. These distortions … aggregate and sectoral technology growth as well as reallocation effects. We also apply our framework to reconcile divergent TFP …We derive aggregate growth-accounting implications for a two-sector economy with heterogeneous capital subsidies and …

change as an engine of growth is even larger than previously estimated. Second, existing producer durable price indices do … not adequately account for quality change. As a result, measured capital stock growth is biased. Third, if accurate, the …

This paper generalizes the Nelson-Phelps catch-up model of technology diffusion. We allow for the possibility that the … pattern of technology diffusion can be exponential, which would predict that nations would exhibit positive catch-up with the … productivity growth than the leader nation. ; We derive a nonlinear specification for total factor productivity growth that nests …

significant effect on conventionally-measured total factor productivity growth (i.e. the Solow Residual). This has two …