Dynamic Structure, Exogeneity, Phase Portraits, Growth Paths, and Scale and Substitution Elasticities
31 Pages Posted: 5 Feb 2005
Abstract
The paper studies autonomous dynamic systems that allow for the existence of economic growth per capita without dynamically generating explosive solutions. The implications of any degree of homogeneity, including increasing returns to scale in production, must be carefully examined in two and higher dimensions. The necessity of introducing some exogenous state variables is demonstrated within homogeneous dynamic systems. The authors solve and demonstrate the dynamic implications of scale and the substitution elasticities in various basic (two-factor) and augmented (multifactor) aggregate growth models.
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Population, Technology, and Growth: From the Malthusian Regime to the Demographic Transition
By Oded Galor and David N. Weil
-
By Oded Galor and David N. Weil
-
The Gender Gap, Fertility and Growth
By Oded Galor and David N. Weil
-
The Gender Gap, Fertility, and Growth
By Oded Galor and David N. Weil
-
By Gary D. Hansen and Edward C. Prescott
-
Natural Selection and the Origin of Economic Growth
By Oded Galor and Omer Moav
-
Natural Selection and the Origin of Economic Growth
By Oded Galor and Omer Moav
-
From Stagnation to Growth: Unified Growth Theory
By Oded Galor
-
From Stagnation to Growth: Unified Growth Theory
By Oded Galor
-
From Physical to Human Capital Accumulation: Inequality in the Process of Development
By Oded Galor and Omer Moav