Towards Applied Disequilibrium Growth Theory: Vii Intensive Form and Steady State Calculation in the Case of Substitution
University of Technology Sydney Finance, Economics Working Paper No. 99
41 Pages Posted: 6 Feb 2006
Date Written: December 1999
In this paper we consider the applied structural model of diequilibrium growth that we introduced in a previous paper. In particular we express the model in terms of intensive form variables which turn out to be governed by a set of 39D dynamic equations. We consider the model from the perspective of national accounts and also determine and analyze the model's steady state. The model allows for smooth input and output substitution (via a neoclassical production function) between its three inputs (capital, imported commodities and labor) and two outputs (domestically traded goods and exported commodities).
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