Cover -- Half-title -- Title -- Copyright -- Contents -- Preface -- PART ONE: TOPICS IN GROWTH THEORY -- PART TWO: STATISTICAL ISSUES IN ECONOMIC GROWTH AND DYNAMICS -- PART THREE: DYNAMIC ISSUES IN INTERNATIONAL ECONOMICS -- Contributors -- PART ONE Topics in Growth Theory -- 1 Growth and the Elasticity of Factor Substitution -- I -- II -- III -- APPENDIX -- 2 RelativeWealth, Catching Up, and Economic Growth -- 1. INTRODUCTION -- 2. STATUS-SEEKING: AN OVERVIEW -- 3. A MODIFIED CASS-RAMSEY MODEL WITH IDENTICAL STATUS-SEEKING AGENTS -- 3.1. Assumptions and Notation -- 3.2. The Benchmark Scenario: The Social Planner's Problem -- 3.3. Individual Optimization -- 4. A MODIFIED ENDOGENOUS GROWTH MODEL -- 4.1. Case 1 -- 4.1.1. The Social Planner's Problem -- 4.1.2. The Laissez-Faire Outcome -- 4.2. Case 2 -- 4.2.1. The Social Planner's Problem -- 4.2.2. The Laissez-Faire Outcome -- 5. CATCHING UP WHEN HOUSEHOLDS HAVE UNEQUAL INITIAL WEALTHS -- 5.1. The Model -- 5.2. Steady States -- 5.3. Catching Up: Stability Analysis -- 6. CONCLUDING REMARKS -- APPENDIX: PROOF OF PROPOSITION 2.6 -- REFERENCES -- 3 Knowledge and Development: A Schumpeterian Approach -- 1. INTRODUCTION -- 2. CREATING KNOWLEDGE -- 2.1. The Need for Growth Models Where Knowledge Creation Is Endogenous -- 2.2. The Limits of the AK Approach -- 2.3. A Schumpeterian Model with Capital Accumulation -- 3. ABSORBING KNOWLEDGE -- 3.1. Two Main Channels for Technology Transfers -- 3.2. Facilitating Technology Transfers: Education and Infrastructure -- 3.3. Cross-Country Convergence Analysis Revisited -- 3.3.1. R&D Spillovers -- 3.3.3. The Nelson-Phelps Approach to Human Capital -- 3.3.4. Neoclassical Convergence versus Technological Catch-Up -- 4. CONCLUSIONS -- REFERENCES -- PART TWO Statistical Issues in Growth and Dynamics -- 4 Delinearizing the Neoclassical Convergence Model.

DELINEARIZING THE NEOCLASSICAL CONVERGENCE MODEL -- THE FIRST-ORDER APPROXIMATION TO THE TRANSITIONAL DYNAMICS OF THE SOLOW-SWAN MODEL -- DERIVING THE EXACT DYNAMICS OF THE SOLOW-SWAN MODEL -- LINEAR AND NONLINEAR ESTIMATION METHODS -- CONCLUDING COMMENTS -- REFERENCES -- 5 Bifurcations in Macroeconomic Models -- 1. INTRODUCTION -- 2. STABILITY -- 3. BIFURCATIONS IN MACROECONOMICS -- 3.1. Transcritical Bifurcations -- 3.2. Pitchfork Bifurcations -- 3.3. Saddle-Node Bifurcations -- 3.4. Hopf Bifurcations -- 4. SINGULARITY-INDUCED BIFURCATIONS -- 5. CONCLUSION -- REFERENCES -- PART THREE Dynamic Issues in International Economics -- 6 Dynamic Trade Creation -- 1. INTRODUCTION -- 2. THE MODEL -- 3. BALANCED GROWTH PATHS -- 4. DYNAMIC TRADE CREATION AND THE GROWTH EFFECTS OF CUSTOMS UNIONS -- 5. THE GROWTH EFFECTS OF A FREE TRADE AREA -- 6. CONCLUSION -- REFERENCES -- 7 Substitutability of Capital, Investment Costs, and Foreign Aid -- 1. INTRODUCTION -- 2. THE ANALYTICAL FRAMEWORK -- 2.1. Private Sector -- 2.2. Public Capital, Transfers, and National Debt -- 2.3. Macroeconomic Equilibrium -- 2.4. Steady-State Equilibrium -- 2.5. Equilibrium Dynamics -- 3. NUMERICAL ANALYSIS OF TRANSITIONAL DYNAMICS -- 3.1. A Permanent Foreign Aid Shock: Long-Run Effects -- 3.1.1. Tied Transfer -- 3.1.2. Pure Transfer -- 3.2. The Effectiveness of Foreign Aid and the Elasticity of Substitution -- 3.3. Transitional Dynamics -- 4. COFINANCING -- 5. WELFARE SENSITIVITY TO INVESTMENT COSTS AND CAPITAL MARKET IMPERFECTIONS -- 6. CONCLUSIONS -- REFERENCES -- 8 Microchurning with Smooth Macro Growth: Two Examples -- 1. INTERNATIONAL TRADE AND CHURNING AT THE MICROLEVEL -- 2. FOLLOWERS LEAPFROGGING LEADERS -- 3. CONCLUDING REMARKS -- REFERENCES -- Index.