Questions tagged [endogenous-growth]

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6
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1answer
2k views

Infinite Horizon Transversality Condition

This question is an extension of Endogenous Growth: Balanced Growth Path with CRRA Utility however, this question asks about a specific concept used in that question, and I think it would be helpful ...
4
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1answer
579 views

Endogenous Growth: Balanced Growth Path with CRRA Utility

I've got a model of endogenous growth due to spillovers. $\textbf{Model:}$ $$K_t=\frac{1}{n}\sum_{t=1}^nk_t$$ In this model, $k_t$ is chosen by agents, and $K_t=\bar{k}_t$ (the average of all $k_t$). ...
3
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1answer
136 views

Induced technical change vs. directed technical change

I am trying to get a better grip on the literature on directed technical change and induced technical change. In other words, I am trying to understand if these concepts are the same and used ...
3
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1answer
137 views

Why do developing countries adopt 21st century technology, but stay behind in output per capita?

The economic growth rate of Latin America has been about 3% per year for decades; but if you have ever visited, many of the natives have: internet, smartphones, tomography, hybrid cars, etc. Why don'...
2
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1answer
59 views

Human Capital Vs TFP

I'm interested in familiarizing myself with some of the intra-debates that have occurred over the years, having to do with Mankiw, Romer, Weil (1992) and Klenow, Rodriguez-Clare (1997). Some argue ...
2
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1answer
50 views

How to prove that GDP grows at the same rate as consumption on Lab Equipment Model?

I'm studying the Lab Equipment Model (Barro-Sala-i-Martin, Chapter 6). I'm having trouble when trying to prove that every variables grows at the same rate as consumption. I was able to prove that $\...
2
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1answer
65 views

Comparative Statics on Balanced Growth Path

It would be a silly question. In a model, I have found the BGP (balanced growth path) for all key variables. As expected, these variables are constant variables ; $$\mu^{BGP}=\frac{\alpha+\rho+\pi}{...
1
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1answer
84 views

Introduction of an asset tax in the AK model

Let's start by analyzing the family's problem with the imposition of a tax. Assuming a CRRA utility function: \begin{equation} U = \int_0^\infty e^{-(\rho-n)t} \cdot \left[ \frac{c^{1-\theta}-1}{1-...
1
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1answer
60 views

Models with Learning by Doing and Knowledge Spillovers - Barro, Sala-i-Martin (2003)

Consider the model of endogenous growth with learning by doing and knowledge spillovers presented in Barro & Sala-i-Martin (2003), chapter 4, section 4.3, starting in page 212. In equilibrium, the ...
1
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1answer
35 views

Showing Growth rates are equal in BGP?

One feature of Balanced Growth Path is that growth rates are equal along it: Consider the following conditions: $y_t= Xk_t$ $y_t = c_t + i_t$ $k_{t+1} = (1-\delta)k_t$ From first equation it is easy ...
1
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0answers
119 views

Capital accumulation equation in steady-state (OLG model)

So I was given a question to derive the equation for aggregate capital accumulation. $K_{t+1}$, and explain if the economy has a stationary steady-state with zero growth. The model is as follows, ...
1
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0answers
150 views

Estimating Endogenous vs Exogenous growth models

Exogenous economic growth models (mostly those that take technological progress, or change in TFP as exogenous and random) are rather easy to estimate econometrically. But how about endogenous ...
0
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1answer
107 views

Why, theoretically, is economic growth exponential? [closed]

Despite the experimentally well-observed exponential nature of GDP growth, I've never actually seen a theoretical reason or "prediction" why it should be so. (Even if the answer is "...
0
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2answers
291 views

a question on the endogenous growth model

I have such a question on the endogenous growth mode”: In the macroeconomics literature there are various ways in which the growth process in the Ransey-Cass- Koopmans model has been endogenized. ...
0
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2answers
78 views

Books on Technological Progress and Growth

I've done some google search for good, reader friendly albeit technical, books on technological progress/change and economic growth. However, I've not found what I want. If you are using or have heard ...
0
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1answer
2k views

Growth rate of variables on a balanced growth path (BGP)

Normally, in the very basic endogeneous model of growth. It is said that all variables grow at a constant rate. Let's take the basic capital accumulation ; $$\dot{K}=Y-C$$ If I write this in ...
0
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2answers
74 views

Decreasing labor force and GDP

I'm a bachelor student writing a paper on the effects of China's one child policy on future GDP. My professor told me to use growth models. However, I'm unsure which growth model I need to use for ...
0
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1answer
61 views

Question on overlapping generations

My question is from over lapping generations Question is as follows I found that $$k(t+1)= \frac{\beta(1-\alpha)}{(1+\beta)(1+n)}A(t)k(t)^{\alpha}$$ How can I deal with A(t) to find the steady state $...
0
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1answer
61 views

How to derive the standard euler equation from the Expanding Variety Model

In the standard expanding variety model where the representative household faces the following CRRA utility function $$ \int_{0}^{\infty} \exp(-\rho t) \frac{C(t)^{1-\theta}-1}{1-\theta}dt $$ and ...
0
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1answer
33 views

Wage Growth Rate in the R&D Model

I am trying to understand the R&D model and how to calculate the growth rate of wage in this model. There is no equation given, but it’s stated that : household income must equal total ...
0
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1answer
25 views

Endogenous Growth in the case of externalities (Learning by doing)

so for the Learning by doing model productivity is defined as $$A_t=BK_t$$. Inserting this into the optimum conditions leads us to the following:$$r_t=\alpha BL^{1-\alpha}$$ and $$w_t=(1-\alpha)B^{1-\...
0
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1answer
57 views

Directed technical change, Acemoglu (2002) framework - trying to understand how an equation is derived

You may have read Acemoglu (2002) on the topic of directed technical change. I am reading a similar research paper, and I could not understand how the author derived the final equation using ...