Colombian Economic Growth, Investment and Saving: From 1954 to 2019 and Beyond
13 Pages Posted: 22 Aug 2019
Date Written: August 20, 2019
This paper presents an interpretation of post-1953 Colombian economic growth and a discussion on future outcomes. The interpretation takes the form of a data playback guided by the decentralized equilibrium version of the Cass-Koopmans-Ramsey model. The role of technical change as a driver of GDP growth, household income and average wage is highlighted. The model leads to an unusual conclusion when it is applied to a small open economy like the Colombian one: the higher the rate of expected technical change, the higher the firms's investment rate and the lower the households' savings rate, remaining constant other things.
Keywords: Colombian Economic Growth; Cass-Koopmans-Ramsey Model; Small Open Economy; Technical Change; Interest Rate; Investment; Households Savings
JEL Classification: E13, E21, E22, F41, F43, O11, O41, O54
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