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Balanced growth despite Uzawa
The American
economic
review, 2017-04, Vol.107 (4), p.1293-1312
[Peer Reviewed Journal]
Copyright© 2017 American Economic Association ;Copyright American Economic Association Apr 2017 ;ISSN: 0002-8282 ;EISSN: 1944-7981 ;DOI: 10.1257/aer.20151739
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Title:
Balanced growth despite Uzawa
Author:
Grossman, Gene M
;
Helpman, Elhanan
;
Oberfield, Ezra
;
Sampson, Thomas
Subjects:
Accumulation
;
Aggregate production
;
Bildungsinvestition
;
Capital
;
Economic
growth
;
Economic
growth
models
;
Economic
growth
rate
;
Economic
models
;
Economic
theory
;
Endogenous
;
Generation
;
Growth
models
;
Human capital
;
Investition
;
Kapital
;
Marginal products
;
Modell
;
Prices
;
Production capital
;
Production functions
;
Productivity
;
Shorter Papers
;
Stock shares
;
Technologische Entwicklung
;
Theorems
;
Theorie
;
USA
;
Wachstum
;
Wirtschaftsgut
Is Part Of:
The American
economic
review, 2017-04, Vol.107 (4), p.1293-1312
Description:
The evidence for the United States points to balanced growth despite falling investment-good prices and a less-than-unitary elasticity of substitution between capital and labor. This is inconsistent with the Uzawa Growth Theorem. We extend Uzawïs theorem to show that the introduction of human capital accumulation in the standard way does not resolve the puzzle. However, balanced growth is possible if education is endogenous and capital is more complementary with schooling than with raw labor. We present a class of aggregate production functions for which a neoclassical growth model with capital-augmenting technological progress and endogenous schooling converges to a balanced growth path.
Publisher:
Nashville: American
Economic
Association
Language:
English
Identifier:
ISSN: 0002-8282
EISSN: 1944-7981
DOI: 10.1257/aer.20151739
Source:
AUTh Library subscriptions: ProQuest Central
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