Publication Type
Working Paper
Version
publishedVersion
Publication Date
9-2007
Abstract
Since the elasticity of substitution between capital and labor is not always one, and since technical progress is not always Harrod-neutral, it is desirable to have an endogenous growth model that admits all sizes of the elasticity and all known technology modes. We derive an equation to do just that, fully describing the per capita income growth rate at all times. It shows a typical economy needing hundreds if not thousands of years to reach its long term growth rate, leading to the conclusion that even the short run may be very long indeed.
Keywords
Elasticity of substitution, Non-Harrod-neutral technology, short-run growth
Discipline
Econometrics | Growth and Development
Research Areas
Econometrics
First Page
1
Last Page
21
Publisher
SMU Economics and Statistics Working Paper Series, No. 12-2007
City or Country
Singapore
Citation
LEUNG, Hing-Man.
Un-Balanced Economic Growth. (2007). 1-21.
Available at: https://ink.library.smu.edu.sg/soe_research/1068
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.