Hostname: page-component-78c5997874-ndw9j Total loading time: 0 Render date: 2024-11-10T11:50:41.328Z Has data issue: false hasContentIssue false
  • English
  • Français

OPTIMAL GROWTH, DEBT, CORRUPTION, AND R&D

Published online by Cambridge University Press:  26 September 2002

Charles-Henri Dimaria  and
Cuong Le Van
Charles-Henri Dimaria
Affiliation:
Université de Paris 1
Cuong Le Van
Affiliation:
Université de Paris 1
Get access Rights & Permissions [Opens in a new window]

Abstract

This paper analyzes optimal paths in a one-sector growth model when the technology is not convex. In such a case, we prove that optimal paths converge to the upper steady state iff the initial wealth is above a critical level. Then, we first show that, thanks to debt and/or R&D, the poverty trap may be avoided. Second, we introduce a distortion: corruption that mostly has dramatic consequences on growth, but may have a beneficial effect if it is not high and if it improves productivity (incentive effect).

Keywords

Optimal GrowthDebtCorruptionR&D
Type
ARTICLES
Information
Macroeconomic Dynamics , Volume 6 , Issue 5 , November 2002 , pp. 597 - 613
Copyright
© 2002 Cambridge University Press

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)