Dai, Darong (2011): Modeling the minimum time needed to economic maturity.

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Abstract
A general equilibrium model has been constructed in a stochastic endogenous growth economy driven by an ItoLevy diffusion process. The minimum time to “economic maturity” for an underdeveloped economy has been computed both in the preference manifold of the modified Ramsey fashion and in that of the modified Radner fashion with its support, i.e., fiscal policies and savings strategy, endogenously determined. Furthermore, the effects of different information structures to the endogenous time have been thoroughly investigated, and local sensitivity analyses of optimal consumption per capita with respect to the initial level of capital stock per capita have been smoothly incorporated into the current macroeconomic model.
Item Type:  MPRA Paper 

Original Title:  Modeling the minimum time needed to economic maturity 
English Title:  Modeling the Minimum Time Needed to Economic Maturity 
Language:  English 
Keywords:  Endogenous growth; Economic maturity; Optimal taxation; Endogenous savings; Preference manifold; Information structure; Local sensitivity analyses; Economic development 
Subjects:  E  Macroeconomics and Monetary Economics > E6  Macroeconomic Policy, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook > E62  Fiscal Policy O  Economic Development, Technological Change, and Growth > O1  Economic Development > O11  Macroeconomic Analyses of Economic Development H  Public Economics > H2  Taxation, Subsidies, and Revenue > H21  Efficiency; Optimal Taxation D  Microeconomics > D9  Intertemporal Choice and Growth > D91  Intertemporal Consumer Choice; Life Cycle Models and Saving C  Mathematical and Quantitative Methods > C6  Mathematical Methods; Programming Models; Mathematical and Simulation Modeling > C61  Optimization Techniques; Programming Models; Dynamic Analysis D  Microeconomics > D8  Information, Knowledge, and Uncertainty > D82  Asymmetric and Private Information; Mechanism Design 
Item ID:  40583 
Depositing User:  darong dai 
Date Deposited:  09. Aug 2012 01:48 
Last Modified:  14. Feb 2013 02:03 
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URI:  http://mpra.ub.unimuenchen.de/id/eprint/40583 