Mino, Kazuo and Koji, Shimomura and Wang, Ping (2003): Occupational Choice and Dynamic Indeterminacy.
Download (228kB) | Preview
This paper construct a two-sector model of two-period lived overlapping generations with endogenous occupational choice where ability-heterogeneous agents choose whether to become educated when young and henceforth to become skilled when old. We show that endogenous occupational choice in this two-sector framework can result in dynamic indeterminacy without complicate preferences/technologies and without requiring the consumption-good production to be more capital-intensive.
|Item Type:||MPRA Paper|
|Original Title:||Occupational Choice and Dynamic Indeterminacy|
|Keywords:||occupational choice, overlapping generations, indeterminacy of equilibrium|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models
D - Microeconomics > D9 - Intertemporal Choice > D90 - General
J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity
|Depositing User:||Kazuo Mino|
|Date Deposited:||02. Sep 2009 14:23|
|Last Modified:||21. May 2015 11:30|
Aghion, P. and Bolton, P. (1997), "A Theory of Trickle-Down Growth and Development", Review of Economic Studies, 64, 151-172.
Azariadis, C. and Drazen, A. (1990), "Threshold Externalities in Economic Development", Quarterly Journal of Economics, 105, 501-526.
Banerjee, A. and Newman, A. (1993), "Occupational Choice and the Process of Development", Journal of Political Economy, 101, 274-298.
Benhabib, J. and Day, R. (1982), "A Characterization of Erratic Dynamics in the Overlapping Generations Model", Journal of Economic Dynamics and Control, 4, 37-55.
Boldrin, M. (1992), "Dynamic Externalities, Multiple Equilibria, and Growth", Journal of Economic Theory, 58, 198-218.
Fender, J. and Wang, P. (2003) "Educational Policy in a Credit Constrained Economy with Skill Heterogeneity," International Economic Review, 44, 939-964.
Galor, O. (1992), "A Two-Sector Overlapping-Generations Model: A Characterization of the Dynamical System", Econometrica, 60, 351-386.
Grandmont, J. M. (1985), "On Endogenous Competitive Business Cycles", Econometrica, 53, 995-1045.
Jullien, B. (1986), "Competitive Business Cycles in an Overlapping Generations Economy with Productive Investment", Journal of Economic Theory, 46, 45-65.
Michel, P. and Venditti, A. (1997), "Optimal Growth and Cycles in Overlapping Generations Models", Economic Theory, 9, 511-528
Reichlin, P. (1986), "Equilibrium Cycles in an Overlapping Generations Model with Production", Journal of Economic Theory, 40, 89-102.
Reichlin, P. (1992), "Endogenous Fluctuations in a Two-Sector Overlapping Generations Models", in Cycles and Chaos in Economic Equilibrium, edited by J. Benhabib, Princeton University Press, 158-179.