Endogenous Growth, Semi-endogenous Growth... or Both? A Simple Hybrid Model

Guido Cozzi

MPRA Paper from University Library of Munich, Germany

Abstract: First generation endogenous growth models had the counterfactual implication that the long-term growth of per-capita GDP increased with the population size. Two influential growth paradigms, the semi-endogenous and the second generation fully endogenous, eliminated this strong scale effect. Both solutions have useful aspects and insights, but very different policy implications. This paper combines both approaches into a single hybrid model class, and shows that no matter the weight assigned to each paradigm, the long-run predictions of the semi-endogenous policy dominate with high enough population growth rates, while the long-run predictions of the fully endogenous policy dominate at low population growth rates.

Keywords: Strong scale effect; Semi-endogenous growth; Fully endogenous growth. (search for similar items in EconPapers)
JEL-codes: O3 O4 (search for similar items in EconPapers)
Date: 2017-02-24
New Economics Papers: this item is included in nep-fdg and nep-gro
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

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Journal Article: Endogenous growth, semi-endogenous growth... or both? A simple hybrid model (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:77775

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