
Contents
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5.1 Introduction 5.1 Introduction
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5.2 Threshold Effects and Low-Growth Traps: Azariadis and Drazen (1990) and Becker, Murphy, and Tamura (1990) 5.2 Threshold Effects and Low-Growth Traps: Azariadis and Drazen (1990) and Becker, Murphy, and Tamura (1990)
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5.3 Multiple Growth Regimes and Human Capital 5.3 Multiple Growth Regimes and Human Capital
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5.3.1 Human Capital and Thresholds: Durlauf and Johnson (1995) 5.3.1 Human Capital and Thresholds: Durlauf and Johnson (1995)
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5.3.2 Technology Diffusion and Multiple Growth Paths: Benhabib and Spiegel (2005) 5.3.2 Technology Diffusion and Multiple Growth Paths: Benhabib and Spiegel (2005)
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5.4 Low-Growth Traps and the Complementarity between Human Capital and R&d: Redding (1996) 5.4 Low-Growth Traps and the Complementarity between Human Capital and R&d: Redding (1996)
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5.5 Nonlinearities in the Human Capital Growth Relationship: Summary and Conclusions 5.5 Nonlinearities in the Human Capital Growth Relationship: Summary and Conclusions
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Notes Notes
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5 Threshold Effects, Multiple Equilibria, and Nonlinearities in Human Capital and Economic Growth
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Published:October 2008
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Abstract
This chapter examines the linearity assumption and raises the possibility that non-diminishing returns might lead to multiple steady-state equilibria or nonlinear dynamic behavior. It provides details to some of the main contributions to the literature on human capital and nonlinearities in growth. The second section looks at threshold effects and low-growth equilibrium traps. The third section discusses multiple growth regimes and Durlauf and Johnson's methodology which spearheaded the empirical literature in this area, and Benhabib and Spiegel's concept that the process of technological diffusion may result in multiple growth regimes. The fourth section describes the model of Redding that focuses on the complementarity between human capital and research and development and whose key result is also the possibility of a low-growth equilibrium trap.
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