An Atlas of the Parameter Space for the Extended Uzawa-Lucas Endogenous Growth Model
نویسنده
چکیده
In this paper we extend the Lucas (1988) endogenous growth model to include sector-specific external effects and depreciation in both sectors. We derives analytically, the necessary and sufficient conditions for the existence of balanced growth paths and equilibria. We furthermore demonstrate that in contrast to the original model, with the addition of external effects in both the production and in particular, the human capital sector, the Lucas model can be made consistent with arbitrarily high degrees of intertemporal elasticities of substitution. ∗Department of Economics, Mt. Carmel, Haifa 31905, Israel, [email protected].
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