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Title: |
Birth, Death, and Dynamic Inefficiency in an
Endogenous Growth Model |
| Author: |
Kahn, James A.;
Lim, Jong-Soo; Rhee, Changyong |
| Author
Affiliation: |
U Rochester;
Seoul U |
| Source: |
International Economic Journal, Autumn 1997, v. 11, no. 3, pp. 85-102 |
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Publication Date: |
Autumn 1997 |
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Abstract: |
This paper builds a finite horizon
endogenous growth model by incorporating Lucas' (1988) human capital
model into an uncertain lifetime framework a la Buiter (1988). Our
finite horizon model has different policy implication from infinite
horizon models. For example, a non-positive link between capital income
taxation and economic growth in infinite horizon models does not hold in
our finite horizon model. Also, our finite horizon model shows that the
short-run macro management policy which has only the level effect in
infinite horizon models can affect the long-run economic growth. |
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