To make high-quality research more accessible and easier to explore.

Fields:

Threshold Externalities in Economic Development

Quarterly Journal of Economics 1990 105(2), 501
Standard one-sector growth models often have the counterfactual implication that economies with access to similar technologies will converge to a common balanced growth path. We propose an elaboration of the Diamond model that permits multiple, locally stable stationary states. This multiplicity is due to increasing social returns to scale in the accumulation of human capital.