EconPapers    
Economics at your fingertips  
 

Capital Mobility in Neoclassical Models of Growth

Robert Barro, N. Gregory Mankiw and Xavier Sala-i-Martin

American Economic Review, 1995, vol. 85, issue 1, 103-15

Abstract: The neoclassical growth model accords with empirical evidence on convergence if capital is viewed broadly to include human investments, so that diminishing returns to capital set in slowly, and if differences in government policies or other variables create substantial differences in steady-state positions. However, open-economy versions of the theory predict higher rates of convergence than those observed empirically. The authors show that the open-economy model conforms with the evidence if an economy can borrow to finance only a portion of its capital, for example, if human capital must be financed by domestic savings. Copyright 1995 by American Economic Association.

Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (398)

Downloads: (external link)
http://links.jstor.org/sici?sici=0002-8282%2819950 ... O%3B2-O&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
Working Paper: Capital Mobility in Neoclassical Models of Growth (1994) Downloads
Working Paper: Capital mobility in Neoclassical models of growth (1994) Downloads
Working Paper: Capital Mobility in Neoclassical Models of Growth (1992)
Working Paper: Capital Mobility in Neoclassical Models of Growth (1992)
Working Paper: Capital Mobility in Neoclassical Models of Growth (1992) Downloads
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:aea:aecrev:v:85:y:1995:i:1:p:103-15

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Review is currently edited by Esther Duflo

More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().

 
Page updated 2025-03-24
Handle: RePEc:aea:aecrev:v:85:y:1995:i:1:p:103-15