There is a debate over the reliability of the Chinese data (e.g., Young, 2003; Holz, 2003, 2006). In this paper we test the Chinese provincial panel data for the period 1978-2002 against the predictions from the technology diffusion model. We find that the estimated coefficient on initial real GDP per worker is negative and significant, showing strong evidence of conditional convergence; the es...

This study introduces Stackelberg-Nash equilibrium to neoclassical growth theory. It attempts make economic theory more robust in modelling the complexity of market structures. The model is constructed within framework Solow-Uzawa two-sector model. economy composed two sectors. final goods sector same as Solow one-sector which characterized by perfect competition. consumer Uzawa but Stackelberg...

Using a German firm-level data set, this paper is the first to jointly study the cyclical properties of the cross-sections of firm-level real value added and Solow residual innovations, as well as capital and employment adjustment. We find two new business cycle facts: 1) The cross-sectional standard deviation of firm-level innovations in the Solow residual, value added and employment is robust...

Vintage capital models such as Solow model, Ramsey model, two-factor model, and models with endogenous technological change are discussed to demonstrate a variety of applications of nonlinear integral models to mathematical economics and finance. For each model an optimal control problem is formulated and basic results about the existence and asymptotic behavior of a solution are provided. 2005...

Solow (1987) made the statement that ‘we see computers everywhere except in the productivity statistics’. This has come to be known as the “productivity paradox.” Whether this is in fact a paradox or a direct implication of the diffusion of technical change is the focus of this paper. In particular, the implications of two different theoretical treatments of technology diffusion in an economy a...

Submit Manuscript | http://medcraveonline.com The Theory of Economic Growth has its formal beginning from the seminal developments of Harrod & Domar [1]. Subsequently, in view of the well-known criticisms of these developments, particularly the intrinsic instability and the impossibility of achieving a stable equilibrium in the Harrod model, the Solow growth model emerges. In its full version, ...

The East African Community members' strategy is focused on achieving smart, sustainable, and inclusive economic growth. This cannot be achieved without the major contribution of skills, knowledge, innovation, commonly known as human capital formation. It difficult to believe that these goals could realized a good education training system, development, better health sector infrastructure, large...

We examine a model that blends the neoclassical theory of investment with an intertemporal efficiency wage model with turnover costs. Investment decisions in capital are associated with the allocation of labor and the determination of efficiency wages. The model relates Tobin’s q to efficiency wages and, in particular, to the Solow condition. It provides a general framework to analyze firm’s in...