An Examination of the Time Series Evidence on AK-Style Endogenous Growth Models
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Date
2008
Authors
Sakamoto, Kiwako
Journal Title
Journal ISSN
Volume Title
Publisher
University of Oregon
Abstract
In "Time Series Tests of Endogenous Growth Models" (1995)1, Charles Jones
concludes that the two textbook endogenous growth models - AK-models and R&D
based models -are inconsistent with time series evidence. Showing that there is little or
no persistent increase in growth rates of OECD countries but large persistent movements
in investment, Jones argues that either the persistent movements in growth determinant
variables have been offsetting, or "the hallmark of the endogenous growth models, that
permanent changes in policy variables have permanent effects on growth rates, is
misleading." This pafer replicates his time series test ofAK models and extends its
original data to 2004 . The extended data exhibit negative trends or no trend at all in total
investment rates, but in general still support the conclusions of the original paper.
Description
Awarded $1,000 in the 2009 Undergraduate Research Award scholarship competition. 32 p. Paper versions also available for check out or consultation in the University of Oregon's library.