We analyze the transitional dynamics of an endogenous growth model with heterogeneous consumption goods. In this model, convergence is driven by two different forces: the diminishing returns to capital and the growth of the relative price between physical and human capital. Because this second...

This paper analyzes the dynamic behaviour of a two-sector model of endogenous growth with unproductive government spending. In this model, we prove that the subspace of the parameter space where the equilibrium exhibits indeterminacy is larger, the large the fraction of government revenues...

We characterize the dynamic equilibrium of a two-sector endogenous growth model with constant returns to scale. We assume that both sectors produce consumption and investment goods, and we introduce a minimum consumption requirement. In this model, economies with the same fundamentals but...

When habits are introduced multiplicatively in a capital accumulation model, the consumers' objective function might fail to be concave. In this paper we provide conditions aimed at guaranteeing the existence of interior solutions to the consumers' problem. We also characterize the equilibrium...

This paper asserts that the accumulation of capital causes cross-country differences in GDP per capita by generating disparities in the sectoral structure. For that purpose, we characterize the dynamic equilibrium of an endogenous growth that exhibits sectoral change due to the introduction of...