scholarly journals Production Lags And Growth Dynamics In An Overlapping Generations Endogenous Growth Model

2011 ◽  
Vol 27 (2) ◽  
Author(s):  
Rangan Gupta
Keyword(s):  
Growth Rate ◽  
Steady State ◽  
Endogenous Growth ◽  
Overlapping Generations ◽  
Growth Process ◽  
Growth Dynamics ◽  
Marginal Product ◽  
Initial Value ◽  
Overlapping Generations Model ◽  
Endogenous Growth Model

<span>This paper analyzes growth dynamics in an endogenous growth overlapping generations model characterized by production lags in the firm-specific and average economy-wide capital inputs, with the growth process being endogenized by allowing for a production externality. We show that endogenous convergent fluctuations emerge, with the convergence being faster for higher values of the marginal product of labor, given the initial value of the gross growth rate - a result, otherwise impossible, if the production is a function of contemporaneous capital stock. Finally, when production is a function of lagged labor, as well as lagged capital inputs, steady-state is infeasible.</span>

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.

A NOTE ON INFLATION, ECONOMIC GROWTH, AND INCOME INEQUALITY

2009 ◽  
Vol 13 (1) ◽  
pp. 138-147 ◽  
Author(s):  
Yi Jin
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Income Inequality ◽  
Endogenous Growth ◽  
Money Growth ◽  
Relative Importance ◽  
Long Run ◽  
Endogenous Growth Model ◽  
The Relationship ◽  
Negative Growth

This paper develops a monetary endogenous growth model with capital and skill heterogeneity to analyze the relationship among inflation, growth, and income inequality. In the model inflation, growth, and inequality are jointly determined. We show that an increase in the long-run money growth rate raises inflation and reduces growth, but its effect on income inequality depends on the relative importance of the two types of heterogeneity. Inequality shrinks with the rise of inflation when capital heterogeneity dominates and enlarges when skill heterogeneity dominates. Therefore, our model supports a negative (positive) inflation–inequality relationship and a positive (negative) growth–inequality relationship when capital (skill) heterogeneity dominates. In any event, inflation and growth are negatively related.

scholarly journals The impact of green preferences on the relevance of history versus expectations

2019 ◽  
Vol 24 (6) ◽  
pp. 583-607
Author(s):  
Andreas Schaefer ◽  
Anna Stünzi
Keyword(s):  
Steady State ◽  
Overlapping Generations ◽  
Clean Energy ◽  
Environmental Policies ◽  
Stable Steady State ◽  
Overlapping Generations Model ◽  
Environmental Preferences ◽  
Energy Taxes ◽  
Energy Tax ◽  
The Impact

AbstractIn an overlapping generations model with multiple steady states, we analyse the impact of endogenous environmental policies on the relevance of history and expectations for the equilibrium selection. In a polluting regime, environmental preferences cause an increasing energy tax which raises the risk that the economy transitions to the inferior equilibrium under pessimistic expectations. However, higher environmental preferences imply an earlier switch to the clean energy regime. Then, the conflict between production and environmental preferences is resolved and the prospects of selecting the superior equilibrium improve, since positive expectations become more relevant. In an empirical analysis we find that people with environmental preferences tend to have more optimistic expectations about economic development. Using these findings to analyse the steady-state dynamics implies that agents with environmental preferences support higher energy taxes and switch to clean production more quickly. Due to their optimism, the likelihood of reaching the superior stable steady state increases.

scholarly journals AUTOMATION, STAGNATION, AND THE IMPLICATIONS OF A ROBOT TAX

2020 ◽  
pp. 1-32 ◽  
Author(s):  
Emanuel Gasteiger ◽  
Klaus Prettner
Keyword(s):  
Steady State ◽  
Economic Impact ◽  
Technological Progress ◽  
Overlapping Generations ◽  
Investment Decisions ◽  
Cautionary Tale ◽  
Overlapping Generations Model ◽  
Long Run ◽  
Per Capita ◽  
Capita Output

We assess the long-run growth effects of automation in the overlapping generations framework. Although automation implies constant returns to capital and, thus, an AK production side of the economy, positive long-run growth does not emerge. The reason is that automation suppresses wage income, which is the only source of investment in the overlapping generations model. Our result stands in sharp contrast to the representative agent setting with automation, where sustained long-run growth is possible even without technological progress. Our analysis therefore provides a cautionary tale that the underlying modeling structure of saving/investment decisions matters for the derived economic impact of automation. In addition, we show that a robot tax has the potential to raise per capita output and welfare at the steady state. However, it cannot induce a takeoff toward positive long-run growth.

Discrete Versus Continuous Time in an Endogenous Growth Model with Durable Consumption

2014 ◽  
Vol 2 (3-4) ◽  
pp. 67-75 ◽  
Author(s):  
Manuel A. Gómez
Keyword(s):  
Steady State ◽  
Endogenous Growth ◽  
Growth Model ◽  
Continuous Time ◽  
Continuous Variable ◽  
Continuous Time Model ◽  
Time Model ◽  
Durable Consumption ◽  
Monotonic Convergence ◽  
Endogenous Growth Model

AbstractThe choice of time as a discrete or continuous variable may radically affect the stability of equilibrium in an endogenous growth model with durable consumption. In the continuous-time model the steady state is locally saddle-path stable with monotonic convergence. However, in the discrete-time model the steady state may be unstable or saddle-path stable with monotonic or oscillatory convergence.

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