Reference : An Extended Solow Growth Model with Emigration: Transitional Dynamics and Skills Comp...
Scientific journals : Article
Business & economic sciences : Quantitative methods in economics & management
http://hdl.handle.net/10993/5158
An Extended Solow Growth Model with Emigration: Transitional Dynamics and Skills Complementarity
English
Pieretti, Patrice mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
Zou, Benteng mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
2007
Economics Bulletin
Economics Bulletin
6
35
1-11
Yes (verified by ORBilu)
International
1545-2921
Nashville
Tenn
[en] Brain drain ; growth ; complementary ; migration
[en] In this paper we develop an extended Solow growth model with skilled labor emigration which aggregates different labor types from strict complementarity to perfect substitution. Except in two particular cases, balanced growth paths can only be attained asymptotically. We therefore derive an analytical characterization of the transitional dynamics of the model. We are thus able to study the impact of labor elasticity of substitution on the time pattern of per capita income in the country that experiences brain drain. Simulations show that the shape of per capita trajectory depends crucially on the degree of complementarity (substitutability) between labor skills. Given that no income trajectory dominates the others, there is room for policy issues by influencing the elasticity of substitution (Klump and Preissler, 2000).
http://hdl.handle.net/10993/5158

File(s) associated to this reference

Fulltext file(s):

FileCommentaryVersionSizeAccess
Limited access
P-Z-Br-Dr-BIS-2-RE-submit.pdfAuthor postprint160.01 kBRequest a copy

Bookmark and Share SFX Query

All documents in ORBilu are protected by a user license.