This paper studies the relation between patterns of long-term economic growth and indeterminacy of equilibrium in an endogenous growth model with human capital formation. By introducing sector-specific externalities and a non-separable utility function into the Lucas model, we show that multiple...

This paper explores the relationship between factor substitution in production and the steady-sate level of capital stock in a growing economy. Unlike the foregoing studies on this topic that have exclusively utilized one-sector growth models, we consider a two-sector economy where investment...

This paper studies the relation between patterns of long-term economic growth and indeterminacy of equilibrium in an endogenous growth model with human capital formation. By introducing sector-specific externalities and a non-separable utility function into the Lucas model, we show that multiple...

This paper studies optimal taxation in dynamic economies with increasing returns. We show that if there exists a stable open-loop Stackelberg equilibrium, the optimal rate of tax on capital income in the steady state is negative in order to eliminate the wedge between the private and the social...

This paper explores a two-sector model of endogenous growth with AK technologies and production externalities. Unlike the standard one-sector AK model, the two-sector model may involve the relative price dynamics, so that there may exist transitional processes. It is shown that under certain...

This paper studies a two-sector model of endogenous technical change in which expansion of each production sector is associated with sector-specific R&D investment. It is shown that the pattern of growth is sensitive to the specification of intersectoral technological spillover as well as to the...

This paper extends the standard model of growth with insecure property rights by introducing variable labor supply and increasing returns to scale. It is assumed that capital stock is jointly owned by multiple interest groups and that each group participates production activities by supplying...

By examining two-sector models of endogenous growth with physical and human capital, this paper demonstrates that indeterminacy of equilibrium may emerge even in the absence of social increasing returns. The first model we examine assumes that both final good and new human capital production...

Using an endogenous growth model with physical and human capital, we explore short-run as well as long-run effects of fiscal policy in the presence of households' production activities. We first show that our model has a unique balanced-growth path that satisfies saddlepoint stability. We then...

This paper explores the effect of monetary policy on the speed of convergence. Using a neoclassical monetary growth model with a cash-in-advance constraint, we conduct numerical evaluation of the effect of changes in the growth rate of money supply on the converging speed of the economy. We find...