DYNAMICS OF THE SAVING RATE IN THE NEOCLASSICAL GROWTH MODEL WITH CES PRODUCTION

2008 ◽  
Vol 12 (2) ◽  
pp. 195-210 ◽  
Author(s):  
MANUEL A. GÓMEZ
Keyword(s):  
Phase Diagram ◽  
Growth Model ◽  
Elasticity Of Substitution ◽  
Global Dynamics ◽  
Saving Rate ◽  
Neoclassical Growth Model ◽  
Qualitative Phase ◽  
Diagram Analysis ◽  
Neoclassical Growth ◽  
Nonmonotonic Behavior

This paper characterizes the global dynamics of the saving rate in the neoclassical growth model with CES production. The study is based on qualitative phase-diagram analysis. The analytical conditions characterizing the cases that may arise theoretically depending on the parameters' configuration are obtained. It is well known that the saving rate behaves monotonically if technology is Cobb-Douglas. However, when the elasticity of substitution is nonunitary, the saving rate path may exhibit nonmonotonic behavior.

Global dynamics of neoclassical growth model with multiple pairs of variable delays

Nonlinearity ◽  
2020 ◽  
Vol 33 (12) ◽  
pp. 6819-6834
Author(s):  
Chuangxia Huang ◽  
Xian Zhao ◽  
Jinde Cao ◽  
Fuad E Alsaadi
Keyword(s):  
Growth Model ◽  
Global Dynamics ◽  
Neoclassical Growth Model ◽  
Variable Delays ◽  
Neoclassical Growth

EQUILIBRIUM DYNAMICS IN AN ENDOGENOUS GROWTH MODEL WITH HABIT FORMATION AND ELASTIC LABOR SUPPLY

2013 ◽  
Vol 19 (3) ◽  
pp. 618-642 ◽  
Author(s):  
Manuel A. Gómez
Keyword(s):  
Phase Diagram ◽  
Labor Supply ◽  
Endogenous Growth ◽  
Growth Model ◽  
Habit Formation ◽  
Global Dynamics ◽  
Long Run ◽  
Endogenous Growth Model ◽  
Elastic Labor Supply ◽  
Diagram Analysis

This paper analyzes the dynamics of an endogenous growth model with external habit formation and elastic labor supply. We first derive the conditions for the existence, uniqueness, and saddlepath stability of a feasible steady state with positive long-run growth. The global dynamics of the economy are characterized by phase-diagram analysis. Then we characterize the comparative static effects of shocks in preferences and production parameters analytically. The comparative dynamic effects of the shocks are characterized by phase-diagram analysis.

scholarly journals Productivity Growth and Public Sector Employment

1998 ◽  
Vol 42 (2) ◽  
pp. 73-79
Author(s):  
Kong Weng Ho ◽  
Hian Teck Hoon
Keyword(s):  
Public Sector ◽  
Growth Model ◽  
Productivity Growth ◽  
Elasticity Of Substitution ◽  
Neoclassical Growth Model ◽  
High Productivity ◽  
The Public ◽  
Public Sector Employment ◽  
Neoclassical Growth ◽  
Public Share

Our model endogenizes the share of public sector employment in a neoclassical growth model. Under the assumptions that public sector production is labor intensive and the elasticity of substitution between capital and labor is less than one, the public share of employment is shown to decline with a rise in capital per effective worker. Our theory predicts that periods of high productivity growth are associated with a rising trend of the public share of employment. This prediction conforms well with U.S. experience from 1950–1995.

scholarly journals CAPITAL AND GROWTH

2021 ◽  
Vol 24 (2) ◽  
pp. 285-312
Author(s):  
Delano Segundo Villanueva
Keyword(s):  
Growth Model ◽  
Growth Models ◽  
Physical Capital ◽  
Consumer Welfare ◽  
Saving Rate ◽  
Neoclassical Growth Model ◽  
Welfare Implications ◽  
State Growth ◽  
Endogenous Growth Models ◽  
Neoclassical Growth

  This paper develops and discusses a neoclassical growth model with two inputs: physical capital stock and combined stock of human and intellectual capital.  The production process is subject to diminishing returns to capital in perfect markets, in sharp contrast to new endogenous growth models that assume increasing returns to capital in imperfect markets.  The model finds that a high saving rate raises both transitional and steady state growth rates of output through increases in physical, human, and intellectual investments that augment labor productivity—a key extension of the Solow (1956)-Swan (1956) growth model.  Additionally, the paper derives an optimal rule for choosing the saving rate that maximizes consumer welfare.  Implications for growth policies are drawn.

scholarly journals A MODIFIED NEOCLASSICAL GROWTH MODEL WITH ENDOGENOUS LABOR PARTICIPATION

2020 ◽  
Vol 23 (1) ◽  
pp. 83-100
Author(s):  
Delano Segundo Villanueva
Keyword(s):  
Growth Model ◽  
Saving Rate ◽  
Labor Participation ◽  
Natural Rate ◽  
Neoclassical Growth Model ◽  
Advanced Economies ◽  
Positive Growth ◽  
S Model ◽  
Endogenous Labor ◽  
Neoclassical Growth

In light of robust econometric results on the determinants of labor participation in36 advanced economies reported by Grigoli et al. (2018) and independently by CBO(2018), my paper modifies the Solow (1956) - Swan (1956), or S-S, growth model bymaking endogenous the rate of labor participation (exogenously fixed at a constantfraction of population in the S-S model). By allowing a fully adjusting natural rate, Ifind that the positive growth effects of a higher saving rate hold in the transition to andin the steady state (a generalization of the S-S model).

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