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Productivity Distribution and Economic Growth

Author

Listed:
  • Jang Ok Cho

    (Sogang University)

  • Hyo-Youn Chu

    (Kyung Hee University)

  • Hyung Seok E. Kim

    (Korea Advanced Institute of Science and Technology)

  • Jaywon Lee

    (Korea Advanced Institute of Science and Technology)

Abstract

This paper develops a tractable model of economic growth in which heterogeneous households produce capital a la Romer (1986). The paper demonstrates that depending on its varying degrees of persistence, productivity heterogeneity dictates economic growth. A regression analysis based upon a reduced-form version of the model shows that the persistence of human capital is the driving force behind the positive effects of productivity dispersion on economic growth

Suggested Citation

  • Jang Ok Cho & Hyo-Youn Chu & Hyung Seok E. Kim & Jaywon Lee, 2016. "Productivity Distribution and Economic Growth," Korean Economic Review, Korean Economic Association, vol. 32, pages 23-40.
    • Handle: RePEc:kea:keappr:ker-20160630-32-1-02
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Economic Growth; Productivity Distribution; Human Capital; Incomplete Markets;
    All these keywords.

    JEL classification:

    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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