You are not currently logged in.
Access JSTOR through your library or other institution:
If You Use a Screen ReaderThis content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
A Simple Time Series Test of Endogenous vs. Exogenous Growth Models: An Application to the United States
Narayana R. Kocherlakota and Kei-Mu Yi
The Review of Economics and Statistics
Vol. 78, No. 1 (Feb., 1996), pp. 126-134
Published by: The MIT Press
Stable URL: http://www.jstor.org/stable/2109852
Page Count: 9
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Preview not available
This paper presents evidence supporting endogenous growth models that emphasize public structural capital. We apply a simple test of endogenous vs. exogenous growth models. In exogenous growth economies temporary innovations to policy variables lead only to temporary changes in GNP levels, while in endogenous growth economies the innovations can lead to permanent changes in GNP levels. Of the seven U.S. policy variables we examine, only non-military equipment capital and non-military structural capital have a statistically and economically significant effect upon long-run GNP levels. Further estimation suggests that the non-military equipment capital result is not robust and that several disaggregate components of structural capital contribute significantly.
The Review of Economics and Statistics © 1996 The MIT Press