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Bulletin of Monetary Economics and Banking

Document Type

Article

Abstract

In light of robust econometric results on the determinants of labor participation in 36 advanced economies reported by Grigoli et al. (2018) and independently by CBO (2018), my paper modifies the Solow (1956) - Swan (1956), or S-S, growth model by making endogenous the rate of labor participation (exogenously fixed at a constant fraction of population in the S-S model). By allowing a fully adjusting natural rate, I find that the positive growth effects of a higher saving rate hold in the transition to and in the steady state (a generalization of the S-S model).

First Page

83

Last Page

100

Creative Commons License

Creative Commons Attribution-NonCommercial 4.0 International License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Philippines

Affiliation

Bangko Sentral ng Pilipinas

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