The Poverty of Linear Nations: Lessons from Taking an AK Model to the Data

João Ejarque () and Ana Reis

No 03-06, Discussion Papers from University of Copenhagen. Department of Economics

Abstract: This paper takes an AK model to the PWT data. In the model, intratemporal and intertemporal shocks are reduced forms for different technologies, and determine the variation of the growth rate. Using the policy functions of the model we recover time series for the unobserved technology shock for a panel of countries. We can then evaluate both how well the model fits the data and what the contribution of the different shocks to the variation of growth rates is. We find that the data is largely inconsistent with the AK structure. However, we isolate what we believe are pervasive patterns in macroeconomic models: a negative correlation between intra and intertemporal shocks, and an ever increasing level of technology matched with ever cheaper consumption relative to investment.

Keywords: endogenous growth; technology shocks; investment shocks (search for similar items in EconPapers)
JEL-codes: E21 E32 O40 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2003-04
New Economics Papers: this item is included in nep-dev
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.econ.ku.dk/english/research/publications/wp/2003/0306.pdf/ (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kud:kuiedp:0306

Access Statistics for this paper

More papers in Discussion Papers from University of Copenhagen. Department of Economics Oester Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Hoffmann ().