Type

Report

Authors

Kieran McQuinn
Karl Whelan

Subjects

Economics

Topics
technology industrial productivity behaviour solow growth model empirical work convergence economics growth rate income

Solow (1956) as a model of cross-country growth dynamics (2007)

Abstract Despite the widespread popularity of the Solow growth model, much of the recent empirical work based on the classic framework misrepresents a crucial feature of the model. Namely, the growth rate of technological progress, assumed to be exogenous in the Solow model, is often identified as being constant across countries. This simplification of the behaviour of technological progress runs counter to the evidence and has had a number of significant implications for the interpretation of the Solow model. One implication has been an overemphasis on the role of factor accumulation in explaining cross-country income differentials. In addition, the commonly-cited empirical result that the speed of conditional convergence is slower than predicted by the Solow model is a function of this inaccurate assumption about technology rather than due to a failure of the model itself.
Collections Ireland -> University College Dublin -> School of Economics
Ireland -> University College Dublin -> College of Social Sciences and Law
Ireland -> University College Dublin -> Economics Research Collection

Full list of authors on original publication

Kieran McQuinn, Karl Whelan

Experts in our system

1
Kieran McQuinn
University College Dublin
Total Publications: 5
 
2
Karl Whelan
University College Dublin
Total Publications: 69