Download or read book Persistent Differences in National Productivity Growth Rates with A Com-mon Technology and Free Capital Mobility written by Kenneth M. Kletzer and published by . This book was released on 1991 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper develops a two-country endogenous growth model to investigate possible causes for the existence and persistence of productivity growth differentials between nations despite a common technology, constant returns to scale and perfect international capital mobility. Private consumption is derived from a three-period overlapping generations specification. The source of productivity (growth) differentials in our model is the existence of a non-traded capital good ('human capital') whose augmentation requires a non-traded current input (time spent by the young in education rather than leisure) We consider the influence on productivity growth differentials of private thrift, public debt, the taxation of capital and savings and of policy towards human capital formation.