In this paper, I investigate the effect of substitutability airnong final goods on welfare growth under the environment that productivity growth in each industry is not independent of one another. In such an environment, less substitutability is favorable to the welfare growth rate and the steady state welfare level, contrasting to Baumol (1967) and Lucas (1988).
|Publication status||Published - 2007 Aug 1|
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)