NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Is Growth Exogenous? Taking Mankiw, Romer and Weil Seriously

Ben S. Bernanke, Refet S. Gurkaynak

NBER Working Paper No. 8365
Issued in July 2001
NBER Program(s):   EFG

Is long-run economic growth exogenous? To address this question, we show that the empirical framework of Mankiw, Romer, and Weil (1992) can be extended to test any growth model that admits a balanced growth path; and we use that framework both to revisit variants of the Solow growth model and to evaluate simple alternative models of endogenous growth. To allow for the possibility that economies in our sample are not on their balanced growth paths, we also study the cross-sectional behavior of TFP growth, which we estimate using alternative measures of labor's share. Our broad conclusion, based on both model estimation and growth accounting, is that long-run growth is significantly correlated with behavioral variables such as the savings rate, and that this correlation is not easily explained by models in which growth is treated as the exogenous variable. Hence, future empirical studies should focus on models that exhibit endogenous growth.

download in pdf format
   (208 K)

email paper

This paper is available as PDF (208 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w8365

Published: Is Growth Exogenous? Taking Mankiw, Romer, and Weil Seriously, Ben S. Bernanke, Refet S. Gürkaynak. in NBER Macroeconomics Annual 2001, Volume 16, Bernanke and Rogoff. 2002

Users who downloaded this paper also downloaded these:
Acemoglu, Johnson, and Robinson w8460 Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution
Barro and Lee w15902 A New Data Set of Educational Attainment in the World, 1950–2010
Klenow and Rodriguez-Clare The Neoclassical Revival in Growth Economics: Has It Gone Too Far?
Henderson, Storeygard, and Weil w15199 Measuring Economic Growth from Outer Space
Barro w5698 Determinants of Economic Growth: A Cross-Country Empirical Study
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us