Economic Growth Model of Endogenous Institutions: Construction and Deduction
In the existing literatures of new institutional economics, the prime assumption was defective that institutions were treated generally as exogenous variables. Based on this problem, in order to reveal the internal relation on institutions and economic growth from a deeper level, through build an expanding Solow model with referring to the treatment methods of endogenous technology, it takes institutional factors into endogenous model and deduces it. Finally, comes to the conclusion that the institutional innovation not only can promote economy to grow effectively, but also engenders the conditional convergence about institutions in economic growth. It means that the model is a reasonable supplement to modern economic growth theories.
KeywordsEconomic Growth Institutional Change Empirical Mode Decomposition Balance Growth Path Institutional Innovation
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