A Defense of AK Growth Models

Abstract

AK growth models predict that permanent changes in government policies affecting investment rates should lead to permanent changes in a country’s GDP growth. Charles Jones (1995) sees no evidence for this prediction in data for 15 OECD countries after World War II: rates of investment, especially for equipment, have risen while GDP growth rates have not… (More)

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Cite this paper

@inproceedings{McGrattan1998ADO, title={A Defense of AK Growth Models}, author={Ellen R. McGrattan}, year={1998} }