TY - JOUR
T1 - On growth and indeterminacy
T2 - some theory and evidence
AU - Benhabib, Jess
AU - Gali, Jordi
N1 - Funding Information:
1994. We thank Xavier Sala-i-Martin, Fabrizio Zilibotti, and discussant Steven Durlauf for helpful comments, and Roberto Perli for assistance with the data. We acknowledge financial support from the C.V. Staff Center for Applied Economics. This project was initiated while Jordi Gal~ was visiting Universitat Pompeu Fabra, with financial support from a grant (DGICYT PB93-0388). t Correspondence to: Jess Benhabib, New York University, Department of Economics, New York, New York 10003
PY - 1995/12
Y1 - 1995/12
N2 - We overview some recent models of growth with multiple equilibria. Those models offer a potential explanation for differences in income levels across economies which stands as an alternative to theories that rely exclusively on differences in fundamentals and/or initial conditions. We discuss some of the empirical predictions generated by those models vis à vis the predictions of their deterministic counterparts. Using an approach that makes use of physical and human capital data for a cross-section of countries we show that some of the predictions of growth models with unique equilibria are hard to reconcile with the evidence.
AB - We overview some recent models of growth with multiple equilibria. Those models offer a potential explanation for differences in income levels across economies which stands as an alternative to theories that rely exclusively on differences in fundamentals and/or initial conditions. We discuss some of the empirical predictions generated by those models vis à vis the predictions of their deterministic counterparts. Using an approach that makes use of physical and human capital data for a cross-section of countries we show that some of the predictions of growth models with unique equilibria are hard to reconcile with the evidence.
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U2 - 10.1016/0167-2231(95)90045-4
DO - 10.1016/0167-2231(95)90045-4
M3 - Article
AN - SCOPUS:58149210891
SN - 0167-2231
VL - 43
SP - 163
EP - 211
JO - Carnegie-Rochester Confer. Series on Public Policy
JF - Carnegie-Rochester Confer. Series on Public Policy
IS - C
ER -