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 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
Transitional 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.
The Uzawa-Lucas Endogenous Growth Model
Author: PAOLO. MATTANAPublisher: Routledge
ISBN: 9781138357679
Category :
Languages : en
Pages : 181
Book Description
Using state of the art mathematical techniques this book provides a complete characterization of the Uzawa-Lucas growth model. In this book Paolo Mattana fully explores the dynamic possibilities of the model from both the market and the centralized perspective. A critical evaluation of the inefficiency in the market economy is also provided.
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 BethmannLearning by doing and transitional dynamics in a two-good model of endogenous growth
Author: Svetlana PoshtanovaUniqueness and Indeterminacy
Author: Jess J. BenhabibEconomic Growth and Environmental Policy
Author: Frank HettichPublisher: Edward Elgar Publishing
ISBN: 9781781959992
Category : Political Science
Languages : en
Pages : 296
Book Description
This book should interest all students and scholars of environmental economics and particularly those interested in the relationship between economic growth and environmental quality.