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.

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.

On the Dynamics of Basic Growth Models: Ratio Stability vs. Convergence and Divergence in State Space

2009 ◽  
Vol 10 (4) ◽  
pp. 384-400 ◽  
Author(s):  
Thorsten Pampel
Keyword(s):  
State Space ◽  
Growth Models ◽  
Optimal Growth ◽  
Growth Path ◽  
Solow Model ◽  
Initial Capital ◽  
Balanced Growth ◽  
Balanced Growth Path ◽  
Per Capita ◽  
Convergence And Divergence

Abstract We show for a class of basic growth models that convergence in ratios does not imply the pathwise convergence to the corresponding balanced growth path in the state space. We derive conditions on parameters and on the elasticity of the savings function for convergence or divergence and apply our results to the Solow model, an augmented Solow model as well as to an optimal growth model. An implication for the convergence debate is that two economies that differ only in the initial capital stock and converge in per capita terms might diverge to infinity in absolute terms.

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

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.

Taxes in Our Model: Take 2

2020 ◽  
pp. 163-177
Author(s):  
Harold L. Cole
Keyword(s):  
Steady State ◽  
Income Distribution ◽  
Growth Path ◽  
Heterogeneous Agent ◽  
Agent Model ◽  
Balanced Growth ◽  
Heterogeneous Agent Model ◽  
Distributional Consequences ◽  
Balanced Growth Path ◽  
The U.S

Our first and only heterogeneous agent model is constructed with two types. The steady state balanced growth path is developed, the model is calibrated to the U.S. income distribution and implications of reducing capital taxes are re-examined once distributional consequences are considered.

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.

Sign in / Sign up

Export Citation Format

Share Document