Can transition dynamics explain the international output data?

• Autores: Chris Papageorgiou, Fidel Pérez Sebastián
• Localización: Working papers = Documentos de trabajo: Serie AD, Nº. 2, 2001
• Idioma: inglés
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• Resumen

  • This paper studies the transition dynamics predictions of an R&D-based growth model, and evaluates their performance in explaining income disparities across nations. We find that the fraction of the observed cross-country income variation explained by the transitional dynamics of the model is as large as the one accounted by existing steady-state level regressions. Our results suggest that the traditional view of a world in which nations move along their distinct balanced-growth paths is as likely as the one in which countries move along adjustment paths toward a common (very long-run) steady state.