Convergence in an Open-Economy Growth Model.

This paper reviews the origins of the 2 per percent rule, arguing that existing evidence for the rule is not as strong as is often supposed and that in any case it can be a misleading guide to the payoff period in policy applications. In the context of a postulated change in the rate of increase of total factor productivity, we show that the convergence speed of the former growth rate is markedly slower than the latter.

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Year of publication:	1998
Authors:	Bourdot, B. ; Frith, M. ; Wells, G.
Institutions:	Research School of Economics, College of Business and Economics
Subject:	PRODUCTIVITY \| GROWTH MODELS \| ECONOMIC DEVELOPMENT

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Series:	CEPR Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	27 pages
Classification:	D24 - Production; Capital and Total Factor Productivity; Capacity ; J24 - Human Capital; Skills; Occupational Choice; Labor Productivity
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10004971314