Capital Accumulation, Sector Productivity, and Economic Growth

This dissertation is motivated by the research results of Benigno and Fornaro (2014). Benigno and Fornaro (2014) research, how low interest rates impact the productivity of economies. This dissertation implements extensions of the Benigno and Fornaro (2014) model, that particularly address the capital accumulation, the production functions, and the technology accumulation. In doing so, this dissertation shows that some of the Benigno und Fornaro (2014) research results require specific assumptions, to qualitatively reproduce these Benigno and Fornaro (2014) research results for selected simulation periods. For some parameter constellations and model settings, it requires the assumption, that low interest rates (precisely: low capital costs) asymmetrically affect the sectors (tradable and non-tradable goods production) of the economy, to qualitatively reproduce a slowdown of productivity growth, like it is shown in Benigno und Fornaro (2014), as a simulation result for selected simulation periods.