The model of endogenous economic growth with a balance

2015 ◽  
Vol 8 (2) ◽  
pp. 29-34
Author(s):  
Полев ◽  
V. Polev ◽  
Стародубцев ◽  
Viktor Starodubtsev ◽  
Свистов ◽  
...  
Keyword(s):  
Economic Growth ◽  
Endogenous Growth ◽  
The State ◽  
Discount Factor ◽  
Growth Path ◽  
Stationary Equilibrium ◽  
Balanced Growth ◽  
Endogenous Economic Growth ◽  
Balanced Growth Path

In this paper, we propose a model of endogenous growth, based on the assumption that the discount factor is formed endogenously. Analysis of the model is limited to the study of the state of stationary equilibrium, which correspond to the balanced growth path, and it is shown that the set of stationary equilibria is a continuum, and each individual is uncertain balance

ON THE DYNAMIC EFFICIENCY OF BALANCED GROWTH PATHS IN AN ENDOGENOUS GROWTH SETTING

2016 ◽  
Vol 21 (8) ◽  
pp. 1837-1856 ◽  
Author(s):  
Elena Del Rey ◽  
Miguel-Angel Lopez-Garcia
Keyword(s):  
Growth Rate ◽  
Endogenous Growth ◽  
Overlapping Generations ◽  
Physical Capital ◽  
Marginal Product ◽  
Dynamic Efficiency ◽  
Growth Path ◽  
Balanced Growth ◽  
Balanced Growth Path ◽  
Laissez Faire

In overlapping-generations economies with life-cycle saving and exogenous growth, the laissez-faire equilibrium balanced growth path fails in general to achieve optimality, but is dynamically efficient if the marginal product of physical capital is greater than the growth rate of the economy. In this paper, we accommodate the concept of dynamic (in)efficiency in an overlapping-generations economy with endogenous growth due to human capital accumulation. We show that the condition that the marginal product of physical capital is larger than the growth rate of the economy is necessary but no longer sufficient for the dynamic efficiency of the laissez-faire equilibrium balanced growth path.

The impact of budget deficit, public debt and education expenditures on economic growth in Poland

2021 ◽  
Vol 71 (1) ◽  
pp. 59-84
Author(s):  
Michał Konopczyński
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Public Debt ◽  
Budget Deficit ◽  
Growth Path ◽  
Rapid Improvement ◽  
Balanced Growth ◽  
Education Expenditures ◽  
Balanced Growth Path ◽  
The Impact

AbstractThis paper investigates the relationship between economic growth in Poland and a few metrics of fiscal policy: budget deficit relative to GDP, the structure of public debt, education expenditures, and public consumption. We prove that with constant values of parameters of fiscal policy, over time the economy converges to the balanced growth path which is unique and globally asymptotically stable.Having calibrated the model with statistical data, we demonstrate that in the period of 2000–2016 economic growth in Poland was driven primarily by rapid improvement in the level of human capital (at a rate of 5.4% per annum), and secondarily due to the accumulation of capital (2.7% annually). If recent trends in fiscal policy are continued, the Polish economy will converge to the balanced growth path with GDP growing at 3.7%. This rate may be boosted, if fiscal policy is appropriately adjusted, for example by permanent reduction in budget deficit. We also analyse the effects of changes in the financing structure of public debt. Finally, we present several scenarios of increasing public and private spending on education.

Distribution and Endogenous Growth: The Two-Class Pasinetti Model / Verteilung und endogenes Wachstum: Das Zwei-Klassen Modell von Pasinetti

2001 ◽  
Vol 221 (3) ◽  
Author(s):  
Alfred Greiner
Keyword(s):  
Growth Rate ◽  
Income Distribution ◽  
Saddle Point ◽  
Endogenous Growth ◽  
Growth Path ◽  
Balanced Growth ◽  
Positive Externalities ◽  
Balanced Growth Path ◽  
Per Capita

SummaryThe paper extends the two-class Pasinetti model with workers and capitalists to allow for endogenous growth. Sustained per-capita growth results from positive externalities of investment which for its part only occur if workers devote time to education so that an efficient use of new machines is guaranteed. It is shown that there exists a unique balanced growth path which is a saddle point. The effects of raising education on the growth rate as well as on the income distribution between workers and capitalists are studied as well. It is demonstrated that education affects the balanced growth rate and, thus, the income of workers. However, it does not affect the ratio of workers’ income relative to the income of capitalists.

GROWTH AND FIRM DYNAMICS WITH HORIZONTAL AND VERTICAL R&D

2013 ◽  
Vol 17 (7) ◽  
pp. 1438-1466 ◽  
Author(s):  
Pedro Mazeda Gil ◽  
Paulo Brito ◽  
Oscar Afonso
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Firm Dynamics ◽  
Growth Path ◽  
Economic Growth Rate ◽  
Balanced Growth ◽  
Composition Effects ◽  
Endogenous Growth Model ◽  
Balanced Growth Path ◽  
Empirical Growth

A negative or nonsignificant empirical correlation between aggregate R&D intensity and the economic growth rate is a well-known fact in the empirical growth literature, but scarcely addressed in the theoretical growth literature. This paper develops an endogenous-growth~model that explores the interrelation~between horizontal and vertical R&D under a lab-equipment specification that is consistent with that stylized fact. A key feature is that the growth rate is fully endogenous both on the intensive and on the extensive margin. Strong composition effects between horizontal and vertical R&D, along both transition and the balanced-growth path, then emerge as the main mechanism producing those results. This setting also allows us to obtain a relationship between economic growth and firm dynamics that is consistent with the empirical facts.

An Endogenous Growth Model Based on Pollution Control

2014 ◽  
Vol 644-650 ◽  
pp. 5224-5226
Author(s):  
Ding Bang Cang
Keyword(s):  
Economic Growth ◽  
Endogenous Growth ◽  
Growth Model ◽  
Pollution Control ◽  
Growth Path ◽  
Endogenous Economic Growth ◽  
Model Based ◽  
Economic Growth Model ◽  
Endogenous Growth Model ◽  
Optimal Economic Growth

Based on the endogenous economic growth model, this paper presented a growth model with the pollution control and then obtained the optimal economic growth path solutions.

scholarly journals Golden-Rule Level of the Employment

2017 ◽  
Vol 01 (01) ◽  
pp. 1740005 ◽  
Author(s):  
Yong Tao ◽  
Xiangjun Wu
Keyword(s):  
Production Function ◽  
Golden Rule ◽  
Perfect Competition ◽  
Growth Path ◽  
Aggregate Production ◽  
Balanced Growth ◽  
Aggregate Production Function ◽  
Long Time ◽  
Balanced Growth Path ◽  
General Equilibria

The competitive economy, over a long time scale, would produce a large number of general equilibria, each of which can be regarded as a possible microstate of this economy. Then by the principle of maximum entropy, we can obtain the most probable macrostate which in the case of perfect competition involving a single industry will lead to a Solow-type aggregate production function. By this aggregate production function, one can make clear how labors match firms on the balanced growth path. Here, we prove that when the capital stock of a society arrives at the golden-rule level on the balanced growth path, the social employment will reach the best level at which every firm on average employs an optimal amount of workers.

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