Long-Run Growth, Speed of Convergence and the Specification of Technology
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Manuel A. Gómez
Abstract
This note analyzes the effect that the specification of technology has on the long-run growth rate and the asymptotic speed of convergence in the one-sector endogenous-growth model. We compare three otherwise identical economies – with the same baseline and parameter values – but with different production technologies: CES, VES or Sobelow, respectively. The long-run growth rate and the asymptotic convergence speed under CES production are lower than the corresponding ones under Sobelow production which, in turn, are lower than those under VES production. This is because a higher elasticity of substitution entails a higher easiness to substitute capital for labor which, in the end, results in a higher long-run growth rate.
Funding source: Ministerio de Economía, Industria y Competitividad, Gobierno de España
Award Identifier / Grant number: ECO2017-85701-P
Funding source: Spanish Agencia Estatal de Investigación (AEI)
Award Identifier / Grant number: ECO2017-85701-P
Funding source: Fondo Europeo de Desarrollo Regional (FEDER)
Award Identifier / Grant number: ECO2017-85701-P
Acknowledgments
This work has been supported by the Spanish Ministerio de Economía, Industria y Competitividad, the Spanish Agencia Estatal de Investigación (AEI) and the Fondo Europeo de Desarrollo Regional (FEDER) under Grant No. ECO2017-85701-P.
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- Notes
- Long-Run Growth, Speed of Convergence and the Specification of Technology
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- Tacit Collusion with Consumer Preference Costs
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Articles in the same Issue
- Frontmatter
- Research Articles
- On the Microfoundation of Linear Oligopoly Demand
- Uncertain Outcomes and Climate Change Policy Using an Expo-Power Utility Function
- Price Versus Quantity Competition in a Vertically Related Market with Retailer’s Effort
- Search Costs and Wage Inequality
- Product Differentiation in a Vertical Structure
- Corporate Profit Tax and Strategic Corporate Social Responsibility Under Foreign Acquisition
- Examining the Impact of Electoral Competition and Endogenous Lobby Formation on Equilibrium Policy Platforms
- Entry Deterrence and Free Riding in License Auctions: Incumbent Heterogeneity and Monotonicity
- When is Knowledge Acquisition Socially Beneficial in the Laffont–Tirole Regulatory Framework?
- Notes
- Long-Run Growth, Speed of Convergence and the Specification of Technology
- Working Time under Alternative Pay Contracts in the Ride-Sharing Industry
- Tacit Collusion with Consumer Preference Costs
- Competitively-Issued Convertible Bank Notes in a Theory of Finance: Earl Thompson Meets Fischer Black
