In a two-sector endogenous growth model with learning by doing and intersectoral knowledge spillovers, we associate local dynamics with the slope of the excess demand curve for a consumption good. Factor intensity determines the income effect, which governs dynamics.
- Excess demand curve
- Factor intensity
- Income effect
- Intersectoral knowledge spillovers
- Two-sector endogenous growth model
ASJC Scopus subject areas
- Economics and Econometrics