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Great Divergence, the failure of less developed countries to attract capital from abroad, and a productivity slowdown in … ; Endogenous Growth ; Knowledge Diffusion ; Productivity Slowdown ; Convergence ; Divergence …
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We set up an endogenous growth model in which the efficiency of both capital and fossil energy can be improved, whereas the efficiency of one alternative energy source is limited. With capital and energy as complements, there exist two steady states: one stagnant where energy is fully derived...
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