The Traverse

Branko Horvat
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Branko Horvat: The Institute for Advanced Studies

Chapter 9 in The Theory of International Trade, 1999, pp 54-55 from Palgrave Macmillan

Abstract: Abstract It might be thought that the ‘free gift of growth’ is really not free because there must be some initial investment somewhere. To find out the traverse from a stationary to a growing economy, consider the following schematic example. Let replacement be rectangular and the life span of fixed assets be n years. Let gestation period of investment be n g = 1 year. The annual factor of growth is G = 1 + g.

Date: 1999
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DOI: 10.1057/9780333983386_9

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