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Prometheus bound: polarization is possible in the neoclassical growth model

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Published
<mark>Journal publication date</mark>05/2008
<mark>Journal</mark>Metroeconomica
Issue number2
Volume59
Number of pages9
Pages (from-to)203-211
Publication StatusPublished
<mark>Original language</mark>English

Abstract

The paper demonstrates that the standard neoclassical model of stochastic growth in the absence of any other modifications is consistent with club convergence contrary to the analysis in Cetorelli (2002, Journal of Economic Dynamics and Control, 27, pp. 29–50). In that sense, it is not necessary to augment the model with a probability of adverse shocks that is inversely related to aggregate capital stock or provide other modifications.