On the Mechanics of Economic Convergence

Thomas Steger

German Economic Review, 2006, vol. 7, issue 3, 317-337

Abstract: The speed at which an economy converges to its steady state is investigated by using a general non-scale R&D-based growth model. To accomplish this task, an analytical decomposition formula for the instantaneous rate of convergence is developed. By applying this decomposition to the model under study, the driving forces behind the convergence process are identified. Two convergence mechanisms are distinguished: the accumulation-decumulation mechanism and the resource-reallocation mechanism. The relative importance of the different convergence mechanisms is assessed using numerical techniques. Moreover, it is shown that the specific shock being considered might be crucial for the instantaneous rate of convergence.

Keywords: R&D-based growth; transitional dynamics; speed of convergence; decomposition; convergence mechanisms (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/j.1468-0475.2006.00158.x (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
Journal Article: On the Mechanics of Economic Convergence (2006)
Working Paper: On the Mechanics of Economic Convergence (2003)
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:bpj:germec:v:7:y:2006:i:3:p:317-337

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/ger/html

DOI: 10.1111/j.1468-0475.2006.00158.x

Access Statistics for this article

German Economic Review is currently edited by Peter Egger, Almut Balleer, Jesus Crespo-Cuaresma, Mario Larch, Aderonke Osikominu and Georg Wamser

More articles in German Economic Review from De Gruyter
Bibliographic data for series maintained by Peter Golla ().