Arbeitspapier
Capital Utilization and the Foundations of Club Convergence
Club convergence may arise as an empirical prediction from standard neoclassical growth models where the aggregate production technology displays diminishing returns to capital. This requires that the propensity to save from wage income is greater than the propensity to save from capital income. This paper shows how endogenous capital utilization may produce such savings behavior in an otherwise standard Solow model. That is, even if households save a constant fraction of total income multiple stable steady states may arise when capital utilization is endogenously determined.
- Language
-
Englisch
- Bibliographic citation
-
Series: EPRU Working Paper Series ; No. 2004-14
- Classification
-
Wirtschaft
Economic Development: General
One, Two, and Multisector Growth Models
- Subject
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economic growth
capital utilization
multiple eqilibria
Kapazitätsauslastung
Entwicklungskonvergenz
Wachstumstheorie
- Event
-
Geistige Schöpfung
- (who)
-
Dalgaard, Carl-Johan
Winther Hansen, Jes
- Event
-
Veröffentlichung
- (who)
-
University of Copenhagen, Economic Policy Research Unit (EPRU)
- (where)
-
Copenhagen
- (when)
-
2004
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Dalgaard, Carl-Johan
- Winther Hansen, Jes
- University of Copenhagen, Economic Policy Research Unit (EPRU)
Time of origin
- 2004
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