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An Endogenous Growth Model with Expanding Ranges of Consumer Goods and Producer Durables

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  • Xie, Danyang

Abstract

This paper constructs a growth model with the feature that the range of differentiated consumption goods and the range of specialized producer durables are both endogenously determined. The author shows that this feature allows the domestic investment rate to be closely associated with the domestic saving rate even when international financial markets are integrated. He also argues that this feature is important in explaining the observed cross-country diversity in growth performance and saving behavior. Copyright 1998 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Suggested Citation

  • Xie, Danyang, 1998. "An Endogenous Growth Model with Expanding Ranges of Consumer Goods and Producer Durables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(2), pages 439-460, May.
    • Handle: RePEc:ier:iecrev:v:39:y:1998:i:2:p:439-60
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    Cited by:

    1. Peng, Shin-Kun & Thisse, Jacques-Francois & Wang, Ping, 2006. "Economic integration and agglomeration in a middle product economy," Journal of Economic Theory, Elsevier, vol. 131(1), pages 1-25, November.
    2. Gancia, Gino & Zilibotti, Fabrizio, 2005. "Horizontal Innovation in the Theory of Growth and Development," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 3, pages 111-170, Elsevier.
    3. Steven Silver, 2010. "Convergence in Revealed Preferences for Automobiles as Differentiated Goods: U.S. and OECD Countries: 1970–1999," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 38(1), pages 3-14, March.
    4. Doi, Junko & Mino, Kazuo, 2005. "Technological spillovers and patterns of growth with sector-specific R&D," Journal of Macroeconomics, Elsevier, vol. 27(4), pages 557-578, December.
    5. Apergis, Nicholas & Tsoumas, Chris, 2009. "A survey of the Feldstein-Horioka puzzle: What has been done and where we stand," Research in Economics, Elsevier, vol. 63(2), pages 64-76, June.

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