Author: Dirk BethmannPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
Transitional Dynamics in the Uzawa-Lucas Model of Endogenous Growth
Author: Dirk BethmannTransitional Dynamics in a Lucas Model of Endogenous Growth
Author: Björn Henning HartmannPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
This paper analyses the transitional dynamics and the steady states of the Lucas model for the competitive equilibrium and the social optimum, additionally allowing for population growth and depreciation. Comparing both paths, it becomes clear that the efficiency losses due to the externality are potentially extensive. I find the optimal subsidy on education in order to coincide optimal and equilibrium growth and to maximise life-time consumption.
Transitional Dynamics in Two-sector Models of Endogenous Growth
Author: Casey B. MulliganPublisher:
ISBN:
Category : Capital
Languages : en
Pages : 70
Book Description
The steady state and transitional dynamics of two-sector models of endogenous growth are analyzed in this paper. We describe necessary conditions for endogenous growth. The conditions allow us to reduce the dynamics of the solution to a system with one state-like and two control-like variables. We analyze the determinants of the long run growth rate. We use the Time-Elimination Method to analyze the transitional dynamics of the models. We find that there are transitions in real time if the point-in-time production possibility frontier is strictly concave, which occurs, for example, if the two production functions are different or if there are decreasing point-in-time returns in any of the sectors. We also show that if the models have a transition in real time, the models are globally saddle path stable. We find that the wealth or consumption smoothing effect tends to dominate the substitution or real wage effect so that the transition from relatively low levels of physical capital is carried over through high work effort rather than high savings. We develop some empirical implications. We show that the models predict conditional convergence in that, in a cross section, the growth rate is predicted to be negatively related to initial income but only after some measure of human capital is held constant. Thus, the models are consistent with existing empirical cross country evidence.
Equilibrium Dynamics in Two-sector Models of Endogenous Growth
Author: Antonio Ladrón de GuevaraPublisher:
ISBN:
Category : Economic development
Languages : en
Pages : 92
Book Description
On Convergence in Endogenous Growth Models
Author: Salvador OrtigueiraPublisher:
ISBN:
Category : Convergence
Languages : en
Pages : 42
Book Description
A Simple Method to Study the Transitional Dynamics in Endogenous Growth Models
Author: Dirk BethmannPhases of Economic Development and the Transitional Dynamics of an Innovation-Education Growth Model
Author: Maurizio IacopettaPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
This paper extends earlier analysis of the transitional dynamics of a growth model in which both human capital and innovation drive income expansion. Funke and Strulik [2000]. On endogenous growth with physical capital, human capital and product variety. European Economic Review 44 [491-515] suggest that the typical advanced economy follows three development phases, characterized in a temporal order by physical capital accumulation, human capital formation, and innovation, and that the transitional dynamics of the model reproduce such a sequencing. I argue that other sequences of the phases of development are possible and show that the model can generate a trajectory in which innovation precedes human capital formation. This trajectory accords with the observation that the rise in formal education followed with a considerable lag the process of industrialization. U.S. income and educational time series data are used to corroborate the innovation-education trajectory.
Learning by doing and transitional dynamics in a two-good model of endogenous growth
Author: Svetlana PoshtanovaTransitional Dynamics and Endogenous Growth Revisited. The Case of Public Capital
Author: Blanca Sanchez-RoblesPublisher:
ISBN:
Category :
Languages : en
Pages : 0
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.
On Growth and Indeterminacy
Author: Jess BenhabibPublisher:
ISBN:
Category : Economic development
Languages : en
Pages : 78
Book Description