Adjustment Costs in A Two-Capital Growth Model
Journal of Economic Dynamics & Control, 2002, 26, 5, 837-850
DUCZYNSKI, Petr, Adjustment Costs in A Two-Capital Growth Model, Journal of Economic Dynamics & Control, 2002, 26, 5, 837-850 - https://hdl.handle.net/1814/16971
Retrieved from Cadmus, EUI Research Repository
Numerous empirical studies observe that output growth depends positively on human capital and negatively on output. This paper demonstrates that an open-economy neoclassical growth model with large adjustment costs for human capital and moderate adjustment costs for physical capital can provide a rationale for these observations. The model can be calibrated for sufficiently slow conditional convergence. (C) 2002 Elsevier Science B.V. All rights reserved.
Cadmus permanent link: https://hdl.handle.net/1814/16971
Full-text via DOI: 10.1016/S0165-1889(00)00084-1
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