Non Monotoninc Catching up in a Solow Model with Public Capital

Silvia Bertarelli and Roberto Censolo

Economia politica, 2006, issue 1, 15-40

Abstract: In this paper we propose a standard Solow model augmented with public capital in the production function. The model solution displays two steady states, an unstable one and an efficient stable equilibrium. As a result the model predicts both divergence and non monotonic convergence; that is a transition path characterized by increasing growth rates up to the point where the traditional convergence behavior describes the successive evolution towards the stationary equilibrium. Using traditional cross section techniques the hypothesis of non monotonic catching-up is tested against a large sample of countries, obtaining favorable evidence.

Date: 2006
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.rivisteweb.it/download/article/10.1428/21645 (application/pdf)
https://www.rivisteweb.it/doi/10.1428/21645 (text/html)
Access to full text is restricted to subscribers

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:mul:jb33yl:doi:10.1428/21645:y:2006:i:1:p:15-40

Access Statistics for this article

Economia politica is currently edited by Alberto Quadrio Curzio, Giorgio Lunghini, Pier Carlo Nicola

More articles in Economia politica from Società editrice il Mulino
Bibliographic data for series maintained by ().