Drugeon, Jean-Pierre; Poulsen, Odile; Venditti, Alain - In: Economic Theory 21 (2003) 1, pp. 175-183
This article considers a two-sector model of economic growth with “labour-augmenting” intersectoral external effects stemming from the aggregate capital stock. It is shown that equilibrium balanced growth paths with a non-trivial labour allocation scheme become available. A set of sufficient...