We consider a general class of endogenous growth models with infinitely lived households and analyze how different budgetary rules affect the stability of the economy. We show that a discretionary fiscal policy implies that the government always violates its inter-temporal budget constraint along a balanced growth path, whereas a balanced budget rule tends to stabilize the economy. A rule based...

The effective factors on the economic growth of Iran during the first 5-year development plan are studied. The main characteristics of this period are that the first development plan began after the end of war during which some of the unused capacities of the war period were utilized. While the budget deficit was continued in this period the government also pursued policies such as devaluation ...

â â â â â  â  in this paper, we address the question that does fdi alone affect economic growth or interaction of fdi and human capital is required to boost economic growth. we develop the model with an expanding variety of products. we estimate the model using some advanced tests utilizing data on fdi flows from developed countries. we find stronger complementary effects between fdi and human ...

We present a theory of endogenous fiscal policy and growth. Fiscal policy — debt, income tax, spending on local public goods and public investment — is determined through legislative bargaining. Economic growth depends directly on public investment, private investment in human capital and, via learning-by-doing, labor supply. The model predicts that the economy converges to a balanced growth pa...

in this paper, asymmetric effects of exchange rate fluctuation (according to positive and negative shocks) on real output were investigated. in the meantime, the study of behaviour of real output growth in iran’s economy over the period 1338-1386 was done. in specification of the output growth equation, in spite of considering positive and negative shocks of exchange rate, the effects of other ...

We set up an endogenous growth model with physical capital, human capital and blueprints for intermediate goods. The model can generate steady-state growth or stagnation. Along the adjustment path for a developing economy we can distinguish di!erent stages of development. The "rst stage is characterized by physical factor accumulation. At the second stage the economy follows a growth path which...

This study extends Baumol’s (1967) two-sector (manufacturing and services) unbalanced growth model to analyze a situation in which, first, services are used for both final consumption and intermediate inputs into manufacturing production, and second, the productivities of the manufacturing and services sectors endogenously evolve. By using this model, we examine the conditions under which the e...

This paper presents a two-agent economy, in which each agent has a consumption-dependent time preference. The optimal dynamic paths of accumulation will tend to one of many possible steady states, depending on the location of the initial capital level. One of the main results of this model arises in comparison with single-agent models. More precisely, one possible instance of the model consists...

This study presents a method to predict the growth fluctuation of firms interdependent in a network economy. The risk of downward growth fluctuation of firms is calculated from the statistics on Japanese industry.

A possible alternative to the Solow-Swan model is some variant of a model of endogenous growth either in the form of the AK model developed by Romer (1986), Lucas (1988) and Rebelo (1991) or in the subsequent group of models by Romer (1990), Grossman and Helpman (1991a, b), and Aghion and Howitt (1992) that focus more explicitly on the determinants of technological change. In this article we st...