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