Transitional Dynamics and Indeterminacy of Equilibria in an Endogenous Growth Model with a Public Input PDF Download

Author: Theodore Palivos
Publisher:
ISBN:
Category : Economic policy
Languages : en
Pages : 21

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Author: Chong-kee Yip
Publisher:
ISBN:
Category : Economic development
Languages : en
Pages : 23

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Book Description

Author: Theodore Palivos
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
The authors analyze an endogenous growth model with economy-wide increasing returns, in which a public input is essential for private production. Within such a framework, it is shown that a continuum of equilibria and global indeterminacy can arise for reasonable parameter values, simply due to the presence of endogenous public policy. This can potentially account for "leapfrogging" or retroceding growth experiences. It is demonstrated how fiscal policy can serve as a selection device among different convergent paths.

Author: Jess Benhabib
Publisher:
ISBN:
Category : Economic development
Languages : en
Pages : 78

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Author: Jess J. Benhabib
Publisher:
ISBN:
Category :
Languages : en
Pages : 27

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Book Description

Author: Kazuo Mino
Publisher: Springer
ISBN: 4431556095
Category : Business & Economics
Languages : en
Pages : 240

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Book Description
Over the past two decades, the issue of equilibrium indeterminacy has been one of the major research concerns in macroeconomic dynamics. Growth and Business Cycles with Equilibrium Indeterminacy discusses the main topics in this literature. Based on comprehensive surveys and the author’s original research, this book explores sunspot-driven fluctuations in real business cycle models, multiple equilibria in endogenous growth models, and the stabilization effects of fiscal and monetary policy rules. The book also considers equilibrium indeterminacy in open economy models.

Author: Antonio Ladrón de Guevara
Publisher:
ISBN:
Category : Economic development
Languages : en
Pages : 92

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Author: Gordon W. Schmidt
Publisher: Elsevier
ISBN: 9780444512253
Category : Business & Economics
Languages : en
Pages : 512

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Book Description
This book is concerned with the methods by which the dynamics of endogenous economic growth systems may be analysed and numerically computed, and with the validation of such numerical computations through qualitative economic reasoning. The methods comprise linearisation, phase-space analysis and a variety of numerical integration techniques. In particular, the book provides a detailed examination of the transitional dynamics (the movement from some current state towards a steady-state equilibrium) of the influential endogenous growth model from Paul Romer's 1990 Journal of Political Economy article: "Endogenous Technological Change".

Author: Salvador Ortigueira
Publisher:
ISBN:
Category : Convergence
Languages : en
Pages : 42

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Author: Blanca Sanchez-Robles
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
This paper explores some applications of the time elimination technique to models of endogenous growth that include two kinds of inputs (private and public capital). Two alternative specifications of the production function are considered: i.e. a CES and a Jones-Manuelli technology. Because of the homogeneity of degree one of both production functions on private and public capital considered together, these new models predict endogenous growth, but the main difference with the standard model (Barro, 1990) is that these new specifications allow for transitional dynamics towards the steady state. First, the steady state rate of growth of output is obtained for both models, by means of applying the traditional optimal control techniques. Next, the models are calibrated and simulated by applying the time elimination technique. This numerical method allows us to understand the transitional dynamics more deeply. It also provides some insights about the speed of convergence of the model towards the steady state under each of the production function settings and for various values of the parameters. Basic results show that the speed of convergence is slower if we use a CES specification, whereas the transition is faster and less smooth if a Jones-Manuelli production function is assumed. Finally, the technique enables us to compare the results using different values of some parameters of the models.