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Evolution of Factors and Output

  • Sascha Sardadvar
Chapter
Part of the Contributions to Economics book series (CE, volume 1)

Abstract

The purpose of this chapter is to discuss the dynamic developments of the model presented in the previous chapter. In Sect. 7.1, the model’s long run solutions are derived, and it is shown that under the given assumptions, all regions converge to the same stable output levels in the long run. An eventual outcome, possibly beyond our lifetimes, may be of limited interest; for this reason, a number of medium run scenarios of regional growth are discussed comprehensively in Sect. 7.2. The model makes clear predictions concerning mutual interdependence, initial output levels and stocks of capital, which are derived formally in Sect. 7.3.

Keywords

Human Capital Steady State Level Output Level Physical Capital Initial Endowment 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Breuss F (2007) Globalization, EU enlargement and income distribution, WIFO Working Papers 296Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2011

Authors and Affiliations

  1. 1.Department of SocioeconomicsVienna University of Economics and Business, Institute for Economic Geography and GIScienceViennaAustria

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