| Popis: |
Developing the AK model, we construct an endogenous growth model with many industries. Unlike the original AK model, our model generates endogenous growth accompanied by the change of relative price. The growth rate of each industry is determined by such fundamental parameters as the rate of technological progress of the industry, the elasticity of marginal productivity of the industry and the elasticity of marginal utility of the goods produced by the industry. These fundamental parameters are different among the industries. Therefore, our model gives a theoretical explanation of the persistent transition of industrial structure accompanied by a change of relative prices. Moreover, we derive an equation that relates the growth rate of relative price of an industry to the growth rates of capital stock and output of the industry. By using our model, we unifiedly explain several empirical facts that have been known so far. We also give a new theoretical viewpoint about the empirical fact that the relative price of investment is higher in poor countries relative to rich countries. Moreover, we incorporate population growth. In the modified model, we derive an equation which relates the growth rate of relative wage to the growth rates of output and relative price. |
