When economic growth is less than exponential
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When economic growth is less than exponential. / Groth, Christian; Koch, Karl-Josef; Steger, Thomas.
In: Economic Theory, Vol. 44, No. 2, 2010, p. 213-242.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - When economic growth is less than exponential
AU - Groth, Christian
AU - Koch, Karl-Josef
AU - Steger, Thomas
N1 - JEL Classification: O31, O40, O41
PY - 2010
Y1 - 2010
N2 - This paper argues that growth theory needs a more general notion of "regularity" than that of exponential growth. We suggest that paths along which the rate of decline of the growth rate is proportional to the growth rate itself deserve attention. This opens up for considering a richer set of parameter combinations than in standard growth models. And it avoids the usual oversimplistic dichotomy of either exponential growth or stagnation. Allowing zero population growth in three different growth models (the Jones R&D-based model, a learning-by-doing model, and an embodied technical change model) serves as illustration that a continuum of "regular" growth processes fill the whole range between exponential growth and complete stagnation.
AB - This paper argues that growth theory needs a more general notion of "regularity" than that of exponential growth. We suggest that paths along which the rate of decline of the growth rate is proportional to the growth rate itself deserve attention. This opens up for considering a richer set of parameter combinations than in standard growth models. And it avoids the usual oversimplistic dichotomy of either exponential growth or stagnation. Allowing zero population growth in three different growth models (the Jones R&D-based model, a learning-by-doing model, and an embodied technical change model) serves as illustration that a continuum of "regular" growth processes fill the whole range between exponential growth and complete stagnation.
KW - Faculty of Social Sciences
KW - quasi-arithmetic growth
KW - regular growth
KW - semi-endogenous growth
KW - knife-edge restrictions
KW - learning by doing
KW - embodied technical change
U2 - 10.1007/s00199-009-0480-y
DO - 10.1007/s00199-009-0480-y
M3 - Journal article
VL - 44
SP - 213
EP - 242
JO - Economic Theory
JF - Economic Theory
SN - 0938-2259
IS - 2
ER -
ID: 17146630