Brito, Paulo (2011): Global endogenous growth and distributional dynamics.
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In this paper we deal with the global distribution of capital and output across time. We supply empirical support to model it as a partial differential equation, if the support of the distribution is related to an initial ranking of the economies. If we consider a distributional extension of the AK model we prove that it displays both global endogenous growth and transitional convergence in a distributional sense. This property can also be shared by a distributional extension of the Ramsey model. We conduct a qualitative analysis of the distributional dynamics and prove that If the technology displays mild decreasing marginal returns we can have long run growth if a diffusion induced bifurcation is crossed. This means that global growth can exist even in the case in which the local production functions are homogeneous and display decreasing returns to scale.
|Item Type:||MPRA Paper|
|Original Title:||Global endogenous growth and distributional dynamics|
|English Title:||Global endogenous growth and distributional dynamics|
|Keywords:||optimal control of parabolic PDE, endogenous growth, diffusion induced bifurcation|
|Subjects:||C - Mathematical and Quantitative Methods > C6 - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics
D - Microeconomics > D9 - Intertemporal Choice and Growth
E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models
|Depositing User:||Paulo Brito|
|Date Deposited:||01. Oct 2012 13:42|
|Last Modified:||20. Feb 2013 06:30|
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