Capital Mobility in Neoclassical Models of Growth

  title={Capital Mobility in Neoclassical Models of Growth},
  author={Robert J. Barro and N. Gregory Mankiw and Xavier Sala-i-Martin},
  journal={NBER Working Paper Series},
The empirical evidence reveals conditional convergence in the sense that economies grow faster per capita if they start further below their steady-state positions. For a homogeneous group of economies - like the U.S. states, regions of western European countries, and the GECD countries - the convergence is unconditional in that the poor economies grow faster than the rich ones. The neoclassical growth model for a closed economy fits these facts if capital is viewed broadly to encompass human… Expand
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