کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
988789 | 935365 | 2010 | 9 صفحه PDF | دانلود رایگان |
![عکس صفحه اول مقاله: Path-dependent economic progress and regress: The negative role of subsidies in economic growth Path-dependent economic progress and regress: The negative role of subsidies in economic growth](/preview/png/988789.png)
This paper develops a two-stage economic growth model with real options and examines the effects of various subsidy policies. The economic stages are the deterministic and stochastic AK stages, and the economy may shift between the two, depending upon state variables and technological shocks. This model allows for path-dependent economic growth that accounts for both club convergence and divergence across countries. Moreover, it is shown that under certain conditions, a decrease in the subsidy rate facilitates the shift from the deterministic to stochastic AK stages, which is defined as “economic progress”, even in the face of an economic crisis, while more subsidies delay economic progress and promote the shift from the stochastic to deterministic AK stages, which is defined as “economic regress”.
Journal: Structural Change and Economic Dynamics - Volume 21, Issue 3, August 2010, Pages 197–205