Growth Regressions and Economic Theory

Tinbergen Institute Discussion Paper No. 2002-034/2

9 Pages Posted: 19 Apr 2002

See all articles by Chris Elbers

Chris Elbers

Vrije Universiteit Amsterdam, School of Business and Economics; Tinbergen Institute

Jan Willem Gunning

Vrije Universiteit Amsterdam, School of Business and Economics; Tinbergen Institute; Tinbergen Institute

Date Written: 2002

Abstract

In this note we show that the standard, loglinear growth regression specification is consistent with one and only one model in the class of stochastic Ramsey models. This model is highly restrictive: it requires a Cobb-Douglas technology and a 100% depreciation rate and it implies that risk does not affect investment behavior.

Keywords: economic growth, growth regressions, growth under uncertainty

JEL Classification: O4, D91

Suggested Citation

Elbers, Chris and Gunning, Jan Willem, Growth Regressions and Economic Theory (2002). Tinbergen Institute Discussion Paper No. 2002-034/2, Available at SSRN: https://ssrn.com/abstract=306963 or http://dx.doi.org/10.2139/ssrn.306963

Chris Elbers (Contact Author)

Vrije Universiteit Amsterdam, School of Business and Economics ( email )

De Boelelaan 1105
Amsterdam, 1081HV
Netherlands

Tinbergen Institute ( email )

Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands

Jan Willem Gunning

Vrije Universiteit Amsterdam, School of Business and Economics ( email )

De Boelelaan 1105
Amsterdam, 1081HV
Netherlands
+ 310 20 444 6141 (Phone)
+ 310 20 444 6004 (Fax)

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

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