Non-scale models of economic growth

Citation
Ts. Eicher et Sj. Turnovsky, Non-scale models of economic growth, ECON J, 109(457), 1999, pp. 394-415
Citations number
32
Categorie Soggetti
Economics
Journal title
ECONOMIC JOURNAL
ISSN journal
00130133 → ACNP
Volume
109
Issue
457
Year of publication
1999
Pages
394 - 415
Database
ISI
SICI code
0013-0133(199907)109:457<394:NMOEG>2.0.ZU;2-Z
Abstract
Growth models that incorporate non-rivalry and/or externalities imply that the size of an economy may influence its long-run growth rate. Such implied scale effects run counter to empirical evidence. This paper develops a gen eral growth model to examine conditions under which balanced growth is void of scale effects. The model is general enough to replicate well known exog enous, as well as endogenous, (non-) scale models. We derive a series of pr opositions that show that these conditions for non-scale balanced growth ca n be grouped into three categories that pertain to (i) functional forms, (i i) the production structure, and (iii) returns to scale.