Increasing Returns in a Model With Creative and Physical Capital: Does a Balanced Growth Path Exist?

Amitrajeet Batabyal

MPRA Paper from University Library of Munich, Germany

Abstract: In this note we study aspects of economic growth in a region that produces a final consumption good with creative and physical capital. This consumption good is manufactured with a production function that exhibits increasing returns to scale. Our analysis leads to three results. First, we compute the growth rate of creative capital in our regional economy. Second, we show that despite the presence of increasing returns, the regional economy under study converges to a balanced growth path (BGP). Finally, we compute the growth rates of physical capital and output on the BGP.

Keywords: Balanced Growth Path; Creative Capital; Creative Region; Economic Growth; Increasing Returns (search for similar items in EconPapers)
JEL-codes: D20 R11 (search for similar items in EconPapers)
Date: 2016-06-05
New Economics Papers: this item is included in nep-gro, nep-ino and nep-knm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: INCREASING RETURNS IN A MODEL WITH CREATIVE AND PHYSICAL CAPITAL: DOES A BALANCED GROWTH PATH EXIST? (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:74107

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