On the analysis of endogenous growth models with a balanced growth path
| Autor: | Timo Trimborn |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2018 |
| Předmět: |
DYNAMICS
Economics and Econometrics State variable Class (set theory) Endogenous growth theory Transitional dynamics Computer simulation Applied Mathematics 05 social sciences ELASTICITY Knife-edge conditions Stability (probability) Balanced growth 0502 economics and business Path (graph theory) Applied mathematics Uniqueness Growth rate Continuous-time endogenous growth models 050207 economics 050205 econometrics Mathematics |
| Zdroj: | Trimborn, T 2018, ' On the analysis of endogenous growth models with a balanced growth path ', Journal of Mathematical Economics, vol. 79, pp. 40-50 . https://doi.org/10.1016/j.jmateco.2018.09.003 |
| DOI: | 10.1016/j.jmateco.2018.09.003 |
| Popis: | This paper is the first that provides a comprehensive toolkit for analyzing deterministic, continuous-time, endogenous growth models with a balanced growth path. Since it is impossible to analyze the original dynamic system of growing variables, I suggest two different methods of transforming the model variables in order to derive a stationary system. The stationary system can then be used to test for the existence and uniqueness of transition paths and to derive transitional dynamics qualitatively (e.g. by phase diagram analysis) and quantitatively (e.g. by numerical simulation). I provide sufficient conditions under which the transformed dynamic system is autonomous, derive the functional form of the transformed system, and provide instructions of how to analyze the stability properties of the transformed system. Furthermore, I show that the class of models for which the method can be applied exhibits a specific pattern of transitional dynamics. Two identical economies that differ only with respect to the endowment of one state variable are shown to grow with the same balanced growth rate in the long-run, but at different levels. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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