ABSTRACT
The modelling applications in this chapter are stylistic and analytical. A specific hypothesis is formulated to explain stylised facts, the hypothesis is then measured, analysed, and its implications studied. The stylised facts relate to catching-up tendencies in economic growth between poor and rich countries. Among the questions considered are the following. Is there a convergence between rich (or developed) countries and poor (or developing) countries? How do we separate the effects of different economic systems from the effects of levels of economic development? How do we assess the roles of such exogenous forces as the world market and government policy in economic systems and levels of economic development?
