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https://doi.org/10.1057/9781137010582owth factor of the (efficiency-weighted) capital intensity. Second, assuming the GDP growth is constant over time and equals the natural growth rate, sufficient conditions for the existence of a unique and globally stable steady state are presented. Third, intergenerational efficiency of the steady

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Conclusion: Police and the Inner City,n private capital accumulation. After listing the empirical and theoretical shortcomings of the “old” growth theory, the main approaches of the new growth theory are briefly outlined. In Sect. ., knowledge externalities associated with private capital accumulation are introduced into our basic OLG m

Harness

-period patent system generates monopoly rents for producers of recently innovated intermediate goods which serve together with competitively produced intermediates as inputs in final good production. The rising variety of intermediates reduces the unit cost and the price of the final good which ena

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Correction to: Policing the World on Screen, that bubbles cannot occur in highly developed market economies, in line with Martin and Ventura (.. NBER Working Paper Series, Working Paper 15,870, 2010; .. Mimeo, CREI and Universitat Pompeu Fabra. Accessed on July 28, 2012, from ., 2011a) we now describe sufficient conditions for the existence o

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Describing Legislative Patternsee on the notion of “underemployment equilibrium” with so-called “involuntary unemployment.” While the majority of macro theorists trace involuntary unemployment back to frictions and rigidities in the adaptation of wages and product prices to market imbalances, a minority position holds that even u

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The Union Countries Differ in Sizeprevious chapter. Mathematically spoken, the neoclassical trade theory consists of three lemmas and one proposition: the Stolper-Samuelson Theorem, the Rybczynski Theorem, the Heckscher–Ohlin–Samuelson Theorem, and the Heckscher–Ohlin Theorem. We prove all these theorems by using the log-linear util