Growth volatility and technical progress : A simple rent-seeking model

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

8 Scopus Citations
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Author(s)

Detail(s)

Original languageEnglish
Pages (from-to)159-178
Journal / PublicationJournal of Economics/ Zeitschrift fur Nationalokonomie
Volume88
Issue number2
Publication statusPublished - Aug 2006
Externally publishedYes

Abstract

Recent empirical evidence demonstrates that a higher level of technical progress is associated with a lower level of growth volatility and higher expected economic growth. This paper builds a simple growth model which combines the insights of Angeletos and Kollintzas (2000) and Tse (2000; 2001; 2002) with endogenous productivity growth and rent-seeking behavior to account for these stylized facts. Our model complements the literature that focuses on the heterogeneity of different agents.

Research Area(s)

  • Institution, Rent-seeking, Stabilization policy, Technical progress, Volatility of economic growth