A Rostovian model of endogenous growth and underdevelopment traps
Zilibotti, Fabrizio (1995) A Rostovian model of endogenous growth and underdevelopment traps. European Economic Review, 39, (8), 1569-1602. (doi:10.1016/0014-2921(94)00027-W).
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Description/Abstract
The paper presents a model which combines self-sustained growth and '‘underdevelopment traps’ into a common analytical framework. We provide an analytical interpretations to Rostow's observation that there is ‘a decisive interval in the history of a society when growth becomes its normal condition’' and to the empirical evidence that some countries seem not to have achieved this stage yet. The model exhibits aggregate non-convexities and thresholds which separate a region where growth is ‘Solow-type’, with convergence to a stationary steady-state from a region where growth is ‘Romer-type’, with endogenous self-sustained growth. In some critical stages of development there exist multiple equilibrium trajectories, consistent with alternative sets of self-fulfilling beliefs.
| Item Type: | Article |
|---|---|
| ISSNs: | 0014-2921 (print) |
| Related URLs: | |
| Keywords: | underdevelopment traps, thresholds, externalities, technical progress |
| Subjects: | H Social Sciences > HB Economic Theory |
| Divisions: | University Structure - Pre August 2011 > School of Social Sciences > Economics |
| Item ID: | 33090 |
| Date Deposited: | 13 Dec 2007 |
| Last Modified: | 01 Jun 2011 14:12 |
| Contributors: | Zilibotti, Fabrizio (Author) |
| Date: | October 1995 |
| Status: | Published |
| URI: | http://eprints.soton.ac.uk/id/eprint/33090 |
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