Working Paper

Argentina's recovery and \"excess\" capital shallowing of the 1990s

Abstract: The paper examines Argentina?s economic expansion in the 1990s through the lens of a parsimonious neoclassical growth model. The main finding is that investment remained considerably weaker than what the model would have predicted. The resulting excessive ?capital shallowing? could be identified as a weakness of the rapid economic growth of the 1990s that may have played a role in Argentina?s ultimate inability to escape the crisis that started to unfold towards the end of that decade.

Keywords: Argentina; depression; growth models;

JEL Classification: E32;

Bibliographic Information

Provider: Federal Reserve Bank of Dallas

Part of Series: Working Papers

Publication Date: 2002-09-30

Number: 0204

Pages: 23 pages

Note: Published as: Kydland, Finn E. and Carlos E.J.M. Zarazaga (2002), "Argentina's Recovery and "Excess" Capital Shallowing of the 1990s," Estudios de Economia 29 (1): 35-45.