This paper obtains a simple algebraic derivation of the transitional dynamics of a two-sector endogenous growth model. This paper finds that the return to capital and the growth rate of output fall over time on the transition path if the initial ratio of physical capital to human capital is...

Numerous studies on income convergence estimate the convergence equation derived for autarkic economies using data from the world that is increasingly integrated. This paper derives a convergence equation for a world integrated by trade from the standard Heckscher–Ohlin model with factor price...

This paper examines tariffs and other policies designed to protect the domestic investment good industry in a small open economy. In a dynamic two-sector model, where a nontraded investment good competes with an imported investment good, the paper identifies two channels through which commercial...