A two-sector growth model with institutional saving and investment

Donald A R George

No 2012-28, SIRE Discussion Papers from Scottish Institute for Research in Economics (SIRE)

Abstract: This paper develops a two-sector growth model in which institutional investors play a significant role. A necessary and sufficient condition is established under which these investors own the entire capital stock in the long run. The dependence of the long-run growth rate on the behaviour of such investors, and the effects of a productivity increase are analysed.

Date: 2012
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