|Title:||Technology Choice, Externalities in Production, and Chaotic Middle-Income Traps|
Overlapping generations model
|Publisher:||Institute of Economic Research, Kyoto University|
|Journal title:||KIER Discussion Paper|
|Abstract:||We incorporate external effects of capital on production and endogenous technology choice into the standard overlapping generations model. We demonstrate that our model can exhibit poverty traps, middle-income traps, and perpetual growth paths. We also show that these three phenomena coexist for some set of parameters and the economy caught in the middle-income trap can exhibit chaotic fluctuations in the long run. In obtaining these results in the standard overlapping generations model, the combination of technology choice and externalities in production plays a crucial role.|
|Appears in Collections:||KIER Discussion Paper (English)|
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.