Externalities and growth / Peter J. Klenow, Andres Rodriguez-Clare
- Author
- Klenow, Peter J.
- Published
- Cambridge, Mass. : National Bureau of Economic Research, [2004]
- Copyright Date
- ©2004
- Physical Description
- 64 pages : illustrations ; 22 cm.
- Additional Creators
- Rodríguez-Clare, Andrés and National Bureau of Economic Research
Online Version
- www.nber.org , Click here to download PDF file
- Series
- Summary
- "Externalities play a central role in most theories of economic growth. We argue that international externalities, in particular, are essential for explaining a number of empirical regularities about growth and development. Foremost among these is that many countries appear to share a common long run growth rate despite persistently different rates of investment in physical capital, human capital, and research. With this motivation, we construct a hybrid of some prominent growth models that have international knowledge externalities. When calibrated, the hybrid model does a surprisingly good job of generating realistic dispersion of income levels with modest barriers to technology adoption. Human capital and physical capital contribute to income differences both directly (as usual), and indirectly by boosting resources devoted to technology adoption. The model implies that most of income above subsistence is made possible by international diffusion of knowledge"--National Bureau of Economic Research web site.
- Subject(s)
- Note
- "December 2004."
- Bibliography Note
- Includes bibliographical references (pages 60-64).
- Other Forms
- Also available in PDF from the NBER world wide web site (www.nber.org).
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