Note on global dynamics and imbalance effects in the Lucas–Uzawa model

In the traditional literature on the Lucas–Uzawa model, it is proved that in the so‐called normal parametric case, human capital stock grows at a rate greater than its long‐run counterpart in the neighbourhood of the long‐run balanced growth path. We first prove that the claim is true outside the neighborhood of balanced growth paths. More importantly, we identify a crucial asymmetry: whatever the parametric case considered, physical capital stock always grows at a rate lower than its long‐run counterpart when the ratio of physical to human capital is above its long‐run value.