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.
Full text not available from this repository.
Citation
Zilibotti, Fabrizio (1995) A Rostovian model of endogenous growth and underdevelopment traps European Economic Review, 39, (8), pp. 1569-1602. (doi:10.1016/0014-2921(94)00027-W).
More information
Identifiers
Catalogue record
Export record
Altmetrics
Contributors
University divisions
Download statistics
Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.