How much do distortions affect growth? (English)

The author presents a simple endogenous growth model (with two types of capital) that shows the sizable long-run effects on growth of distortionary policies. The model applies to many different types of distortions of relative prices common in developing countries - for example, price controls, black market exchange rates, and differential taxes and tariffs. The model shows that distortions of relative input prices can greatly affect growth and welfare...

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Author

Easterly,William R.;

DEC;
Document Date
1993/11/30
Document Type
Policy Research Working Paper
Report Number
WPS1215
Volume No
1
Total Volume(s)
1
Disclosure Date
2010/07/01
Doc Name
How much do distortions affect growth?
Keywords
input price

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Citation

Easterly,William R.; DEC.

How much do distortions affect growth? (English). Policy, Research working paper ; no. WPS 1215 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/666221468764743558

How much do distortions affect growth? (English)

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