Convergence? Inferences from theoretical models
Article Abstract:
The three major hypotheses on economic convergence are the subject of a major controversy. The hypotheses are the conditional, absolute and club convergence. It is suggested that the controversy may be due, in part, to variances in perception developed from economic growth theories. The dominance of the conditional convergence hypothesis is attributed to unfamiliarity with its theoretical non-robustness. It is argued that factors such as human capital, income distribution, fertility, capital market imperfections and externalities should be included in club convergence to make it a more viable hypothesis.
Publication Name: Economic Journal
Subject: Economics
ISSN: 0013-0133
Year: 1996
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Agency costs in dynamic economic models
Article Abstract:
A research on how nonconvexities in the intermediation of the cost of acquiring private information about borrowers could be an advantage to the operations and growth of private agencies was conducted. There is a consistency between the enriched set of equilibria and some phenomena that are irreconcilable with convex economic growth models such as rank reversals, poverty traps, hump-shaped impulse response functions and growth cycles.
Publication Name: Economic Journal
Subject: Economics
ISSN: 0013-0133
Year: 1999
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