Capital growth paths of the neoclassical growth model.

ABSTRACT: This paper derives the first-order approximated paths of both types of capital in the two-capital neoclassical growth model. The derived capital growth paths reveal that the short-run growth effect of capital injection differs considerably depending on which type of capital is enhanced. This result demonstrates the importance of well-targeted capital enhancement programs such as public sector projects and foreign aid.

SUBMITTER: Takahashi T 

PROVIDER: S-EPMC3502446 | biostudies-literature | 2012

REPOSITORIES: biostudies-literature