Does the AK Model Apply to the Chilean Economy? Time-Series Evidence for the Period of 1960-1998
2001 | journal article. A publication with affiliation to the University of Göttingen.
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Details
- Authors
- Nowak-Lehmann, Felicitas
- Abstract
- This paper is part of a series examining the relevance of the most important textbook growth models. The model of choice in this paper is an endogenous growth model. The AK model –chosen as a representative of an endogenous growth model - is applied to Chilean annual data (1960-1998) and tested. Chile was chosen as a case study, since the Chilean economy shows a respectable growth path that could either be characterized as endogenous or as neoclassical (transitional or steady state). The analysis revealed about two main insights. First, when analyzing long-term growth, the time series should be purged from short-run fluctuations. This can be achieved utilizing a filter. Second, in principle, the differences between the AK model and the neoclassical growth model might not be so significant, making it difficult to discriminate between them from both a theoretical and an empirical point of view.
- Issue Date
- 2001
- Journal
- Revista de Análisis Económico (RAE)
- ISSN
- 0716-5927
- Language
- English