Threshold Effects, Multiple Equilibria, and Nonlinearities in Human Capital and Economic Growth
Threshold Effects, Multiple Equilibria, and Nonlinearities in Human Capital and Economic Growth
This chapter examines the linearity assumption and raises the possibility that non-diminishing returns might lead to multiple steady-state equilibria or nonlinear dynamic behavior. It provides details to some of the main contributions to the literature on human capital and nonlinearities in growth. The second section looks at threshold effects and low-growth equilibrium traps. The third section discusses multiple growth regimes and Durlauf and Johnson's methodology which spearheaded the empirical literature in this area, and Benhabib and Spiegel's concept that the process of technological diffusion may result in multiple growth regimes. The fourth section describes the model of Redding that focuses on the complementarity between human capital and research and development and whose key result is also the possibility of a low-growth equilibrium trap.
Keywords: non-diminishing returns, growth nonlinearities, human capital, low-growth equilibrium traps, multiple growth regimes, research and development
Stanford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.
Please, subscribe or login to access full text content.
If you think you should have access to this title, please contact your librarian.
To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us.
