Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83222
Authors: 
Christiaans, Thomas
Year of Publication: 
2001
Series/Report no.: 
Volkswirtschaftliche Diskussionsbeiträge 94-01
Abstract: 
It is argued that due to their general instability dynamic optimization models cannot be used as positive theories of economic growth. The argument is substantiated by (numerical) examples. A simple rule of thumb is provided as an alternative to the RKC model. This rule is shown to perform well from a normativeand to be reasonable from a positive point of view. The model is consistent with empirically estimated rates of convergence if a broad concept of capital is used.
JEL: 
O41
D90
Document Type: 
Working Paper

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