Lindner, Ines; Strulik, Holger - 2011
This paper introduces the Small World model (Watts and Strogatz, Nature, 1998) into the theory of economic growth and … perpetual growth is explained by a feedback effect from investment to the formation of long-distance links and the diffusion of …. Structurally, the equilibrium of stagnation differs from balanced growth by the presence of relatively many small firms of low …