Browsing by Subject "History-augmented Solow model"

Now showing 1 - 1 of 1

Divergence, convergence, and the history-augmented Solow model
(2017) Kufenko, Vadim; Prettner, Klaus; Geloso, Vincent
We test the history-augmented Solow model with respect to its predictions on the patterns of divergence and convergence between the nowadays industrialized countries of the OECD. We show that the dispersion of incomes increased after the Indus- trial Revolution, peaked during the Second World War, and decreased afterwards. This pattern is fully consistent with the transitional dynamics implied by the history-augmented Solow model.