Production often causes pollution as a by-product. Once pollution problems become too severe, regulation is introduced by political authorities which forces the economy to make a transition to cleaner production processes. We model this transition as a change in "general purpose technology"...

Production often causes pollution as a by-product. Once pollution problems become too severe, regulation is introduced by political authorities which forces the economy to make a transition to cleaner production processes. We model this transition as a change in "general purpose technology"...

The convergence/divergence debate and plausible explanations to the process of catching-up remain highly controversial research areas in growth economics. Recently, these issues have been the subject of questionable predictions with regard future prospect for backward countries, raising concerns...