Gómez, Manuel A.2024-08-292024-08-292023Gómez, M. A. (2023). Factor substitution, long-run equilibrium, and convergence speed in the Lucas model. Economics Letters, 232, 111358. 10.1016/j.econlet.2023.1113580165-1765http://hdl.handle.net/2183/38747Financiado para publicación en acceso aberto: Universidade da Coruña/CISUG[Abstract] We study the effect of factor substitution on long-run equilibrium in the Lucas model with CES production. The long-run growth rate does not depend on the elasticity of substitution. However, there is a negative (positive) relationship between the elasticity of factor substitution and the convergence speed if the baseline ratio of physical capital to effective labor is below (above) its steady-state value.engAtribución-NoComercial 4.0 Internacional (CC BY-NC)http://creativecommons.org/licenses/by-nc/3.0/es/Elasticity of substitutionEndogenous growthConvergence speedHuman capitaljournal articleopen accesshttps://doi.org/10.1016/j.econlet.2023.111358