Article ID Journal Published Year Pages File Type
965495 Journal of Macroeconomics 2012 17 Pages PDF
Abstract
► I extend the Lucas (1988) two-sector endogenous growth model. ► I derive necessary and sufficient conditions for balanced growth and local saddle-path stability. ► Introduce external effects and depreciation in the human capital sector. ► With such externalities model consistent with high intertemporal elasticities of substitution. ► The model with high intertemporal rates of substitution is consistent with cross-country data.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Authors
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