Factor shares, inequality and capital flows

We present an endogenous growth model where innovations are factor savingand model the choice of technologies in an Overlapping Generations framework.Markets are competitive and factor prices are determined by marginal productiv-ity of factors; therefore, the income share of reproducible factors inc...

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Autores:
Zuleta González, Hernando
Tipo de recurso:
Work document
Fecha de publicación:
2015
Institución:
Universidad de los Andes
Repositorio:
Séneca: repositorio Uniandes
Idioma:
spa
OAI Identifier:
oai:repositorio.uniandes.edu.co:1992/8572
Acceso en línea:
http://hdl.handle.net/1992/8572
Palabra clave:
Inequality
Capital markets
Endogenous growth
Capital income share
Technology
Mercado de capitales - Modelos econométricos
Crecimiento endógeno (Economía)
O11, O31, O33, O40, F20
Rights
openAccess
License
http://creativecommons.org/licenses/by-nc-nd/4.0/
Description
Summary:We present an endogenous growth model where innovations are factor savingand model the choice of technologies in an Overlapping Generations framework.Markets are competitive and factor prices are determined by marginal productiv-ity of factors; therefore, the income share of reproducible factors increases withthe stage of development. Beyond the standard results of this type of model wefind that (i) without bequests long run growth is not possible, (ii) if the economypresents long run growth then intra generation inequality may last forever but ifthe economy does not present long run growth then in steady state there is no intrageneration inequality (iii) when the economy is open, the pattern of capital flowsdepends not only on the relative abundance of factors but also on the technolo-gies and, for this reason, capital may not flow from rich to poor economies (iv)consistently, capital flows may not help to break poverty traps.