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Evolution of Factors and Output

In: Economic Growth in the Regions of Europe

Author

Listed:
  • Sascha Sardadvar

    (Vienna University of Economics and Business, Institute for Economic Geography and GIScience)

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.

Suggested Citation

  • Sascha Sardadvar, 2011. "Evolution of Factors and Output," Contributions to Economics, in: Economic Growth in the Regions of Europe, chapter 0, pages 65-77, Springer.
    • Handle: RePEc:spr:conchp:978-3-7908-2637-1_7
    DOI: 10.1007/978-3-7908-2637-1_7
    as

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