This paper characterizes the existence and stability properties of steady state solutions as well as the nature of transition paths of a two-sector growth model with heterogeneous capital. It compares the properties of a Cobb-Douglas-Leontief economy with heterogeneous capital with the...

Growth and International Trade: Introduction and Stylized Facts -- PART I. GROWTH -- Modeling the Growth of the World Economy: The Basic Overlapping Generations Model -- Steady State, Factor Income, and Technological Progress -- Economic Growth and Public Debt in the World Economy -- “New“...

Preface -- 1 Growth and International Trade: Introduction and Stylized Facts -- Part I: Growth -- 2 Modeling the Growth of the World Economy: The Basic Overlapping Generations Model -- 3 Steady State, Factor Income, and Technological Progress -- 4 Economic Growth and Public Debt in the World...

The standard neoclassical growth model with Cobb-Douglas production predicts a monotonically declining saving rate, when reasonably calibrated. Ample empirical evidence, however, shows that the transition path of a country's saving rate exhibits a rising or non-monotonic pattern. In important...