Growth models of the second generation type, e.g. the Jones (1995) or Young (1998) model, all exhibit a so called weak scale effect in per capita production, i.e. larger economies should have a higher per capita production than smaller economies. However, in an open economy context the scale of...

Non-renewable resources are an obstacle for positive long run growth if they are essential for production, households solve an intertemporal Ramsey problem and population is growing. Modern growth models predict that growth is positively related to growth in production factors. Hence, there are...

This paper develops an endogenous growth model based on the idea of new combinations of input factors as a growth mechanism. The model integrates the idea of several technologies used simultaneously in producing final output. Innovations are of the horizontal and vertical type and in addition of...

Scale effects in per capita production are an outcome of many theoretical economic models like second generation growth models, models of the new trade theory or the new economic geography. The prediction is that larger economies should have a higher per capita production than smaller economies....

This paper develops a multi regional growth model of the second generation type with horizontal and vertical innovations. Technology goods are tradable between regions, creating a regional analogy of the weak scale effect introduced by Jones (2004). Per capita production in one region is a...

Empirical studies show that the elasticity of substitution between capital and labor is larger than one in developed countries but smaller in developing countries. This paper develops a production function which allows for this structure in the elasticity of substitution. The case of a falling...

This note extends the finding of Benhabib and Rusticchini (1994) who provide a class of SDGE models, whose solution is characterized by a constant savings rate. We show that this class of models may be interpreted as a standard representative agent SDGE model with costly adjustment of capital...

This paper develops a production function which two separate elasticities of substitution between two input factors. One of these elasticities is obtained if the factor intensity equals a particular baseline value. The second part of the paper gives an economic application and shows the...

Growth models of the second generation type, e.g. the Jones (1995) or Young (1998) model, all exhibit a so called weak scale effect in per capita production, i.e. larger economies should have a higher per capita production than smaller economies. However, in an open economy context the scale of...