The Return to Capital and Convergence in a Two Sector Model of Endogenous Growth

E. Young Song ()

International Economic Journal, 2000, vol. 14, issue 4, 143-163

Abstract: This paper obtains a simple algebraic derivation of the transitional dynamics of a two-sector endogenous growth model. This paper finds that the return to capital and the growth rate of output fall over time on the transition path if the initial ratio of physical capital to human capital is lower than the steady state level. It also shows that two sector endogenous growth models are consistent with the evidence on conditional convergence found by Barro (1991) and Mankiw, Romer, and Weil (1991). Neoclassical growth models and endogenous growth models are impossible to distinguish in terms of the falling rate of return on capital or in terms of conditional convergence. [O41]

Date: 2000
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/10168730000000040 (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:taf:intecj:v:14:y:2000:i:4:p:143-163

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RIEJ20

DOI: 10.1080/10168730000000040

Access Statistics for this article

International Economic Journal is currently edited by Jaymin Lee Editor

More articles in International Economic Journal from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().