INCREASING RETURNS IN A MODEL WITH CREATIVE AND PHYSICAL CAPITAL: DOES A BALANCED GROWTH PATH EXIST?

Amitrajeet Batabyal

Regional Science Inquiry, 2016, vol. VIII, issue 3, 31-35

Abstract: In this note we study aspects of economic growth in a region that produces a final consumption good with creative and physical capital. This consumption good is manufactured with a production function that exhibits increasing returns to scale. Our analysis leads to three results. First, we compute the growth rate of creative capital in our regional economy. Second, we show that despite the presence of increasing returns, the regional economy under study converges to a balanced growth path (BGP). Finally, we compute the growth rates of physical capital and output on the BGP.

Keywords: Balanced Growth Path; Creative Capital; Creative Region; Economic Growth; Increasing Returns (search for similar items in EconPapers)
JEL-codes: D20 R11 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.rsijournal.eu/ARTICLES/December_2016/3.pdf (application/pdf)

Related works:
Working Paper: Increasing Returns in a Model With Creative and Physical Capital: Does a Balanced Growth Path Exist? (2016)
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:hrs:journl:v:viii:y:2016:i:3:p:31-35

Access Statistics for this article

Regional Science Inquiry is currently edited by Dr Christos Ap. Ladias

More articles in Regional Science Inquiry from Hellenic Association of Regional Scientists
Bibliographic data for series maintained by Dimitrios K. Kouzas ().