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A Rostovian model of endogenous growth and underdevelopment traps

Zilibotti, F. (1993) A Rostovian model of endogenous growth and underdevelopment traps. CEPDP (166). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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The paper presents a model which combines self-sustained growth and ''underdevelopment traps'' into a common analytical framework. The objective is to given an analytical interpretations to Rostow''s observation that there is a ''decisive interval in the history of a society when growth becomes its normal condition'' and to the empirical evidence that some countries seem not to have achieved this stage yet. The model exhibits aggregate non-convexities and thresholds which separate a region where growth is ''Solow-type'', with convergence to a stationary steady-state from region where growth is ''Romer-type'' , with endogenous self-sustained growth. In some critical stages of development multiple equilibrium trajectory may exist, consistent with alternative sets of self-fulfilling beliefs.

Item Type: Monograph (Discussion Paper)
Official URL:
Additional Information: © 1993 F.Zilibotti
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HB Economic Theory
Date Deposited: 19 Aug 2008 10:30
Last Modified: 16 May 2024 11:17

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