IDEAS home Printed from https://ideas.repec.org/a/hrs/journl/vviiiy2016i3p31-35.html
   My bibliography  Save this article

Increasing Returns In A Model With Creative And Physical Capital: Does A Balanced Growth Path Exist?

Author

Listed:
  • Amitrajeet A. BATABYAL

    (Department of Economics, Rochester Institute of Technology, 92 Lomb Memorial Drive, Rochester, NY 14623-5604, USA.)

Abstract

In this note we study aspects of economic growth in a region that produces a final consumption good with creative and physical capital. This consumption good is manufactured with a production function that exhibits increasing returns to scale. Our analysis leads to three results. First, we compute the growth rate of creative capital in our regional economy. Second, we show that despite the presence of increasing returns, the regional economy under study converges to a balanced growth path (BGP). Finally, we compute the growth rates of physical capital and output on the BGP.

Suggested Citation

  • Amitrajeet A. BATABYAL, 2016. "Increasing Returns In A Model With Creative And Physical Capital: Does A Balanced Growth Path Exist?," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(3), pages 31-35, December.
    • Handle: RePEc:hrs:journl:v:viii:y:2016:i:3:p:31-35
    as

    Download full text from publisher

    File URL: http://www.rsijournal.eu/ARTICLES/December_2016/3.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Roberta Capello & Andrea Caragliu & Peter Nijkamp, 2009. "Territorial Capital and Regional Growth: Increasing Returns in Cognitive Knowledge Use," Tinbergen Institute Discussion Papers 09-059/3, Tinbergen Institute.
    2. Donovan, Pierce J. & Batabyal, Amitrajeet A., 2015. "On economic growth and investment income taxation in a creative region," International Review of Economics & Finance, Elsevier, vol. 38(C), pages 67-72.
    3. Amitrajeet Batabyal & Peter Nijkamp, 2013. "The creative class, its preferences, and unbalanced growth in an urban economy," Journal of Evolutionary Economics, Springer, vol. 23(1), pages 189-209, January.
    4. Usman, Umer & Batabyal, Amitrajeet A., 2014. "Goods production, learning by doing, and growth in a region with creative and physical capital," International Review of Economics & Finance, Elsevier, vol. 33(C), pages 92-99.
    5. Amitrajeet Batabyal & Peter Nijkamp, 2010. "Richard Florida’s creative capital in a trading regional economy: a theoretical investigation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 44(2), pages 241-250, April.
    6. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Amitrajeet A. Batabyal & Peter Nijkamp, 2018. "A Two-Sector Model of Creative Capital Driven Regional Economic Growth," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 16(3), pages 831-840, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Amitrajeet A. BATABYAL, 2016. "Increasing Returns In A Model With Creative And Physical Capital: Does A Balanced Growth Path Exist?," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(3), pages 31-35, December.
    2. Sasaki, Hiroaki, 2020. "Is growth declining in the service economy?," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 26-38.
    3. Batabyal, Amitrajeet & Beladi, Hamid, 2014. "The equilibrium allocation of creative capital to R&D in a dynamic creative region," MPRA Paper 72325, University Library of Munich, Germany.
    4. John Baffoe-Bonnie, 2016. "Productivity Growth and Input Demand: The Effect of Learning by Doing in a Gold Mining Firm in a Developing Economy," International Economic Journal, Taylor & Francis Journals, vol. 30(4), pages 550-570, October.
    5. Amitrajeet A. Batabyal & Peter Nijkamp, 2018. "A Two-Sector Model of Creative Capital Driven Regional Economic Growth," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 16(3), pages 831-840, September.
    6. Donovan, Pierce J. & Batabyal, Amitrajeet A., 2015. "On economic growth and investment income taxation in a creative region," International Review of Economics & Finance, Elsevier, vol. 38(C), pages 67-72.
    7. Daniel Ştefan Armeanu & Georgeta Vintilă & Ştefan Cristian Gherghina, 2017. "Empirical Study towards the Drivers of Sustainable Economic Growth in EU-28 Countries," Sustainability, MDPI, vol. 10(1), pages 1-22, December.
    8. Sergey BLINOV, 2017. "Inflation and economic growth," Journal of Economics Library, KSP Journals, vol. 4(3), pages 345-358, September.
    9. Rao, B. Bhaskara, 2010. "Estimates of the steady state growth rates for selected Asian countries with an extended Solow model," Economic Modelling, Elsevier, vol. 27(1), pages 46-53, January.
    10. Jung-Suk Yu & M. Kabir Hassan & Abdullah Mamun & Abul Hassan, 2014. "Financial Sectors Reform and Economic Growth in Morocco: An Empirical Analysis," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 13(1), pages 69-102, April.
    11. Prof. Dr. Adem KALCA & Resc. Assist. Atakan DURMAZ, 2012. "Diaspora As The Instrument Of Humane Capital," International Journal of Business and Social Research, LAR Center Press, vol. 2(5), pages 94-104, October.
    12. repec:zbw:rwidps:0030 is not listed on IDEAS
    13. Nicolai J. Foss, 2012. "Linking Ethics and Economic Growth: a Comment on Hunt," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 6(3), September.
    14. He, Qichun, 2018. "Inflation and innovation with a cash-in-advance constraint on human capital accumulation," Economics Letters, Elsevier, vol. 171(C), pages 14-18.
    15. Erich Gundlach, 2003. "Growth Effects of EU Membership: The Case of East Germany," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 30(3), pages 237-270, September.
    16. Kawalec Paweł, 2020. "The dynamics of theories of economic growth: An impact of Unified Growth Theory," Economics and Business Review, Sciendo, vol. 6(2), pages 19-44, June.
    17. Kar, Sabyasachi & Pritchett, Lant & Raihan, Selim & Sen, Kunal, 2013. "Looking for a break: Identifying transitions in growth regimes," Journal of Macroeconomics, Elsevier, vol. 38(PB), pages 151-166.
    18. Iamsiraroj, Sasi, 2016. "The foreign direct investment–economic growth nexus," International Review of Economics & Finance, Elsevier, vol. 42(C), pages 116-133.
    19. Md.Yousuf & Raju Ahmed & Nasrin Akther Lubna & Shah Md. Sumon, 2019. "Estimating the Services Sector Impact on Economic Growth of Bangladesh: An Econometric Investigation," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 7(2), pages 62-72, June.
    20. George Asumadu & Emmanuel Amo-Bediako, 2021. "Stock Market Performance and Economic Growth Nexus: A Panacea or Pain to Ghana?," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(4), pages 423-429, April.
    21. Antoine d'Autume, 1992. "Coïntégration et modèles dynamiques," Économie et Prévision, Programme National Persée, vol. 106(5), pages 71-83.

    More about this item

    Keywords

    Balanced Growth Path; Creative Capital; Creative Region; Economic Growth; Increasing Returns;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • D20 - Microeconomics - - Production and Organizations - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hrs:journl:v:viii:y:2016:i:3:p:31-35. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dimitrios K. Kouzas (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.