On the Mechanics of Economic Convergence
Thomas Steger ()
No 03/25, CER-ETH Economics working paper series from CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich
In macroeconomic dynamic models the speed at which output converges to its steady state is of outstanding interest. Theoretical investigations usually focus on the asymptotic speed of convergence only. This procedure is, however, unnecessarily restrictive and hides important information. The paper at hand provides a straightforward and simple analytical decomposition of the instantaneous rate of convergence into its economic determinants. In addition, the resulting convergence-accounting formula is applied to analyse the transition process of a general R&D-based endogenous growth model. As a result, the driving forces behind the convergence process are identified.
Keywords: Convergence accounting; rate of convergence; decomposition; convergence mechanisms; R&D-based growth (search for similar items in EconPapers)
JEL-codes: O0 O3 O31 O33 O41 (search for similar items in EconPapers)
Pages: 35 pages
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.cer.ethz.ch/research/wp_03_25.pdf [301 Moved Permanently]--> https://www.cer.ethz.ch/research/wp_03_25.pdf [301 Moved Permanently]--> https://cer.ethz.ch/research/wp_03_25.pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eth:wpswif:03-25
Access Statistics for this paper
More papers in CER-ETH Economics working paper series from CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich Contact information at EDIRC.
Bibliographic data for series maintained by ().