Colombian Economic Growth, Investment and Saving: From 1954 to 2019 and Beyond

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.