Persistent Differences in National Productivity Growth Rates with a Common Technology and Free Capital Mobility
Willem Buiter and
Kenneth Kletzer
No 542, CEPR Discussion Papers from C.E.P.R. Discussion Papers
Abstract:
The paper develops a two-country endogenous growth model to investigate possible causes for the existence and persistence of productivity growth differentials between nations, even though these countries show a common technology, constant returns to scale and perfect international capital mobility. Private consumption is derived from a three-period overlapping generations specification. The source of productivity (growth) differentials in our model is the existence of a non-traded capital good (`human capital') whose augmentation requires a non-traded current input (time spent by the young in education rather than leisure). We consider the influence on productivity growth differentials of private thrift, public debt, the taxation of capital and savings and of policy towards human capital formation.
Keywords: Convergence; Endogenous Growth; Externalities; Non-Traded Goods; Productivity (search for similar items in EconPapers)
Date: 1991-07
References: Add references at CitEc
Citations: View citations in EconPapers (18)
Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=542 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
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:cpr:ceprdp:542
Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... pers/dp.php?dpno=542
Access Statistics for this paper
More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().