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| Petr Duczynski |
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| ''A Note on the Imbalance Effect in the Uzawa-Lucas Model'' |
| ( 2007, Vol. 4 No.38 ) |
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| The Uzawa-Lucas model is believed to yield a positive dependence of the output growth on the ratio of human capital to physical capital (an empirically plausible imbalance effect). We show that the imbalance effect become less plausible for a low physical capital share and a low elasticity of intertemporal substitution. In particular, the model is inconsistent with empirical observations for a relatively broad range of realistic parameter specifications. |
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| Keywords: |
JEL: D9 - Intertemporal Choice and Growth: General
O4 - Economic Growth and Aggregate Productivity: General |
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| Manuscript Received : May 30 2007 | | Manuscript Accepted : Oct 09 2007 |
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