PROMETHEUS BOUND: POLARIZATION IS POSSIBLE IN THE NEOCLASSICAL GROWTH MODEL

The paper demonstrates that the standard neoclassical model of stochastic growth in the absence of any other modifications is consistent with club convergence contrary to the analysis in Cetorelli (2002, Journal of Economic Dynamics and Control, 27, pp. 29-50). In that sense, it is not necessary to augment the model with a probability of adverse shocks that is inversely related to aggregate capital stock or provide other modifications. Copyright © 2008 The Authors.

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Year of publication:	2008
Authors:	Tsionas, Efthymios G. ; Theocharis, Loukas
Published in:	Metroeconomica. - Wiley Blackwell, ISSN 0026-1386. - Vol. 59.2008, 2, p. 203-211
Publisher:	Wiley Blackwell

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005140354