Download or read book Transitional Dynamics in Two sector Models of Endogenous Growth written by Casey B. Mulligan and published by . This book was released on 1992 with total page 96 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Download or read book Equilibrium Dynamics in Two sector Models of Endogenous Growth written by Antonio Ladrón de Guevara and published by . This book was released on 1994 with total page 92 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Dynamics of Output Growth Consumption and Physical Capital in Two Sector Models of Endogenous Growth written by Farhad Nili and published by . This book was released on 2002 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper considers transitional dynamics of a two-sector endogenous growth model in the Uzawa-Lucas framework. We find that when the ratio of physical to human capital is sufficiently high, it is optimal for both consumption and physical capital to fall for a finite period and then gradually rise along their transition path. The paper also shows that for high values of intertemporal elasticity of consumption, rate of growth of output is increasing in the ratio of physical to human capital, while when the elasticity is moderate or low, output growth is U-shaped.

Download or read book A General Two sector Model of Endogenous Growth with Human and Physical Capital written by Eric Bond and published by . This book was released on 1993 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book On Convergence in Endogenous Growth Models written by Salvador Ortigueira and published by . This book was released on 1994 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book A Two sector Model of Endogenous Growth with Leisure written by Antonio Ladrón de Guevara and published by . This book was released on 1995 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Transitional Dynamics in Two sector Models written by Casey B. Mulligan and published by . This book was released on 1992 with total page 59 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Public Policy in a Two Sector Model of Endogenous Growth written by Alessandra Pelloni and published by . This book was released on 1994 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Transitional Dynamics and Endogenous Growth Revisited The Case of Public Capital written by Blanca Sanchez-Robles and published by . This book was released on 2004 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Download or read book Dynamics Economic Growth and International Trade written by Bjarne Sloth Jensen and published by University of Michigan Press. This book was released on 2010-03-11 with total page 385 pages. Available in PDF, EPUB and Kindle. Book excerpt: While endogenous growth theory has claimed success in modeling various factors of growth and providing an analysis of sustainable economic growth, most of the growth models in published work are for closed economies. The omission of international trade, which is often regarded as the engine of growth, greatly reduces their usefulness. The theory of international trade, on the other hand, is characterized by models that are mainly static. While interest in the dynamics of trade has been growing, there is still little work in this area. The success of the newly industrialized economies that have adopted trade-oriented policies suggests how limited present trade theory is in explaining and analyzing the growth of these economies. The work collected here serves to bridge the "old" growth theory and "new" growth theory; merge growth and trade theory; suggest new analysis and techniques of economic growth; and provide analysis of new issues related to growth and trade. The first chapter surveys endogenous growth and international trade and critically reviews the endogenous growth theory with a unified framework, covering the work on both closed and open economies. Three chapters examine the dynamics of some basic trade models; two chapters focus on growth and trade with endogenous accumulation of human and public capital; two chapters on economic growth, technological progress, and international trade; and two chapters on growth and international factor movements. Contributors include Eric W. Bond, Theo S. Eicher, Rolf Färe, Oded Galor, Shawna Grosskopf, Bjarne S. Jensen, Pantelis Kalaitzidakis, Shoukang Lin, Ngo Van Long, Kazuo Nishimura, Koji Shimomura, Kathleen Trask, Stephen J. Turnovsky, Pham Hoang Van, Henry Wan, Jr., Chunyan Wang, and Kar-yiu Wong. Bjarne S. Jensen is Associate Professor of Economics, Copenhagen Business School. Kar-yiu Wong is Professor of Economics, University of Washington, Seattle.

Download or read book Learning by doing and transitional dynamics in a two good model of endogenous growth written by Svetlana Poshtanova and published by . This book was released on 1996 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Phases of Economic Development and the Transitional Dynamics of an Innovation Education Growth Model written by Maurizio Iacopetta and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Download or read book On the Dynamics of Two sector Models of Endogenous Growth written by Paulo Sèrgio Tenani and published by . This book was released on 1998 with total page 136 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Global Dynamics and Taxation in Models of Endogenous Economic Growthp Li White Space written by FERNANDO GARCIA-BELENGUER CAMPOS and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper summarizes and extends in several dimensions previous results on the dynamics of two-sector endogenous growth models under the Lucas-Uzawa framework. The analysis provides a methodology to compute the global dynamics for a class of two-sector models with taxes on capital and labor income, subsidies to education, and leisure in the utility function. The results are used to provide general laws describing the effect of initial conditions, preference and production parameters, taxes and subsidies on the transitional dynamics, the global speed of convergence and on different measures of the welfare cost of taxation. Many of these results can be extended to other two-sector environments or even multisector economies.p, li { white-space: pre-wrap; }

Download or read book Structural Change in the Two Sector Model with Endogenous Technological Progress written by Pengfei Zhang and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We analyze the steady state and transitional dynamics of two-sector model with structural change and horizontal innovation. There are three main economic forces could drive structural change: technological progress in one sector, technological progress in the other sector, and capital deepening. When the exogenous parameters satisfy some conditions, the present model could generate aggregate balanced growth with non-balanced sectoral growth, in which case structural change would be an eternal phenomenon. However, while the exogenous parameters satisfy other conditions, the present model could generate aggregate balanced growth with balanced sectoral growth, but under the circumstances structural change could take place only during a (perhaps prolonged) transitional dynamic phase. These exogenous parameters include the capital intensity, the elasticity of intermediated input substitution, and the spillover effects in technology progress in the two sectors. Finally, we also show that the occurrence or the absence of structural change and endogenous non-balanced sectoral growth has nothing to dowith capital deepening in the present model, but depends on the sectoral differences in endogenous technological progress rate adjusted by the capital intensity and the elasticity of intermediated input in that sector.

Download or read book On Growth and Indeterminacy written by Jess Benhabib and published by . This book was released on 1995 with total page 78 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Transitional Dynamics of an Endogenous Growth Model with an Erosion Effect written by Tiago Neves Sequeira and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The convergence features of an endogenous growth model with physical capital, human capital and R&D have been studied. We add an erosion effect (supported by empirical evidence) to this model, and fully characterize its convergence properties. The dynamics is described by a fourth-order system of differential equations. We show that the model converges along a one-dimensional stable manifold and that its equilibrium is saddle-path stable, for most plausible values for the parameters. We also argue that one of the implications of considering this erosion effect is the increase in the adherence of the model to data.