Growth Regression and Economic Theory

Chris Elbers; Jan Willem Gunning

Growth Regression and Economic Theory

School of Business and Economics

Research output: Working paper / Preprint › Working paper › Professional

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Abstract

In this note we show that the standard, loglinear growth regression specificationis consistent with one and only one model in the class of stochastic Ramsey models. Thismodel is highly restrictive: it requires a Cobb-Douglas technology and a 100% depreciationrate and it implies that risk does not affect investment behavior.

Original language	English
Place of Publication	Amsterdam
Publisher	Tinbergen Instituut
Publication status	Published - 2002

Publication series

Name	Discussion paper TI
No.	02-034/2

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth

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02034Final published version, 213 KB

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Cite this

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