An Experimental AK Model of Growth

Ferruccio Ponzano () and Roberto Ricciuti

No 3744, CESifo Working Paper Series from CESifo

Abstract: In this paper we test the AK model of growth with laboratory experiments. In each period, agents produce and trade output in a market, and allocate it to consumption and investment. The economy should experience a constant and positive rate of growth. We analyze two treatments differing from technology. We find evidence of positive and constant growth, and the treatment with a better technology exhibits higher growth. Remarkably, production, consumption and the capital stock grow at the same rate in the treatment with lower technology. We find that this growth process is fuelled by large inequalities between subjects.

Keywords: endogenous growth; capital accumulation; heterogeneity; experiments (search for similar items in EconPapers)
JEL-codes: C91 C92 O41 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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