SMU SOE Seminar (October 28, 2022): The Stable Transformation Path

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ABSTRACT Dynamic models of structural transformation are often non-stationary, precluding balanced growth path (BGP) analysis. We develop a generalization of the BGP concept that we call a Stable Transformation Path (STraP). The STraP characterizes the medium-term dynamics of the economy in a turnpike sense; it is the non-stationary path toward which the economy (quickly) converges from an arbitrary initial capital stock. Calibrated simulations demonstrate that these medium-term dynamics have important quantitative implications for structural transformation, investment, and growth, including slow convergence. Medium-term dynamics alone account for the observed 40% secular decline in average growth rates across stages of development. Keywords: Growth, Investment Dynamics, Non-balanced Growth Click here to view the CV. Click here to view the paper.
		PRESENTER Joseph Kaboski University of Notre Dame
		RESEARCH FIELDS Growth & Development International
		DATE: 28 October 2022 (Friday)
		TIME: 10am - 11.30am
		VENUE: Interactive Learning Room School of Economics Level 5 Singapore Management University 90 Stamford Road Singapore 178903