Social rents, interest rates, and growth

Jordi Caballé, Antonio Manresa

Research output: Contribution to journalArticleResearchpeer-review

1 Citation (Scopus)

Abstract

We present a simple OLG model with a convex technology in which physical capital exhibits a productive externality, and workers receive part of the social rents generated by that externality. This setup allows for sustained growth without incurring poverty traps. Moreover, every equilibrium path displays constant interest rates as suggested by some empirical evidence. © 1994.
Original languageEnglish
Pages (from-to)413-419
JournalEconomics Letters
Volume45
DOIs
Publication statusPublished - 1 Jan 1994

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