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Abstracts prior to volume 5(1) have been archived!

Issue 5(1), October 2010 -- Paper Abstracts
Girard  (p. 9-22)
Cooper (p. 23-32)
Kunz-Osborne (p. 33-41)
Coulmas-Law (p.42-46)
Stasio (p. 47-56)
Albert-Valette-Florence (p.57-63)
Zhang-Rauch (p. 64-70)
Alam-Yasin (p. 71-78)
Mattare-Monahan-Shah (p. 79-94)
Nonis-Hudson-Hunt (p. 95-106)



JOURNAL OF APPLIED BUSINESS AND ECONOMICS

Determinants of Steady State Income: Is a Linear Specification Too Simple?

Author(s): Kathleen E. Odell

Citation: Kathleen E. Odell, (2012) "Determinants of Steady State Income: Is a Linear Specification Too Simple?," Vol. 13, Iss. 3, pp. 73 - 90

Article Type: Research paper

Publisher: North American Business Press

Abstract:

This paper examines whether the Solow model of economic growth and steady state income is supported
by available cross-section data. The paper argues that while income per worker is correlated positively
with investment in capital (both physical and human) and negatively with population growth, a simple
log-linear empirical model derived from the Cobb-Douglas production function oversimplifies these
relationships. A nonlinear specification is presented as an alternative. Estimation of the nonlinear
specification shows that for the period 1960-2000, the strongest marginal effects of education occur in
countries where education levels are already relatively high.