Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82055
Authors: 
Groth, Christian
Year of Publication: 
2003
Series/Report no.: 
EPRU Working Paper Series 2003-20
Abstract: 
Conventional endogenous growth theory relies on the assumption of constant returns to ”broad capital”. As Solow pointed out, the strength of this assumption is revealed by recognizing that even the slightest touch of increasing returns creates explosive growth: infinite output in finite time! But Solow’s observation ignored natural resources. What happens if non-renewable resources enter the ”growth engine”? In this case (strictly) endogenous growth requires the technology to be such that there is no upper bound on the sustainable per capita growth rate.
Subjects: 
endogenous growth
semi-endogenous growth
non-renewable resources
knife-edge
JEL: 
O4
Q3
Document Type: 
Working Paper

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