In a recent article Stefan Fölster and Magnus Henrekson [2001] argue that “…the more the econometric problems that are addressed, the more robust the relationship between government size and economic growth appears”. But in failing to control for simultaneity in a valid manner the...

In this study an Extended Version of the Solowian growth model is presented and its properties are compared with those of the original model. In the Solowian model the forces behind the growth process are exogenous and disembodied. In the Extended Model technological change is divided into two...