Brito, Paulo (2011): Global endogenous growth and distributional dynamics.

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Abstract
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 
Language:  English 
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 E  Macroeconomics and Monetary Economics > E1  General Aggregative Models 
Item ID:  41653 
Depositing User:  Paulo Brito 
Date Deposited:  01. Oct 2012 13:42 
Last Modified:  16. May 2015 05:09 
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URI:  http://mpra.ub.unimuenchen.de/id/eprint/41653 