Template-type: ReDif-Paper 1.0 
Author-Name: Ziesemer, Thomas 
Author-Email: ziesemer@merit.unu.edu
Author-workplace-name: UNU-MERIT, and SBE, Maastricht University, 
Title: Testing linear growth rate formulas of non-scale endogenous growth models
Abstract: Endogenous growth theory has produced formulas for steady-state growth 
	 rates of income per capita which are linear in the growth rate of the 
	 population. Depending on the details of the models, slopes and 
	 intercepts are positive, zero or negative. Empirical tests have taken 
	 over the assumption of exogenous population growth from the theoretical 
	 models and have mostly not distinguished steady-state results from 
	 transitional growth. In contrast, we assume (i) that there is two-way 
	 causality and (ii) capture the steady-state property by a long-term 
	 relation in a series of vector-error-correction models allowing (iii) 
	 successively for more heterogeneity. The slope of the growth equations 
	 is positive in this setting. Intercepts are most frequently also 
	 positive, but almost equally often zero, and sometimes even negative. 
	 Although results slightly favour fully- over semi-endogenous growth, and 
	 the slightly more frequent case is that long-run growth can remain 
	 positive if population stops growing, zero or negative intercepts cannot 
	 be ruled out. 
Keywords: Endogenous growth, population growth, panel times series estimation
Classification-JEL: C33, O47
Series: UNU-MERIT Working Papers
Creation-Date: 20170905
Number: 2017-036
File-URL: https://unu-merit.nl/publications/wppdf/2017/wp2017-036.pdf
File-Format: application/pdf
File-Size: 275 kb
Handle: RePEc:unm:unumer:2017036