Antoci, Angelo and Galeotti, Marcello and Russu, Paolo (2012): Global analysis and indeterminacy in a twosector growth model with human capital.

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Abstract
The purpose of the present paper is to highlight some features of global dynamics of the twosector growth model with accumulation of human and physical capital analyzed by Brito, P. and Venditti, A. (2010). In particular, we explore two cases where the BritoVenditti system admits two balanced growth paths each of them corresponding, after a change of variables, to an equilibrium point of a 3dimensional system. In the former one, the two stationary states have, respectively, a 2dimensional and a 1dimensional stable manifold (i.e. they are, in the BritoVenditti terminology, locally indeterminate of order 2 and determinate, respectively). In the latter case, instead, the stable manifolds of the two equilibria have, respectively, dimension two and three (i.e. they are locally indeterminate of order 2 and 3). In both cases we prove the possible existence of points P such that in any neighborhood of P lying on the plane corresponding to a fixed value of the state variable there exist points Q whose positive trajectories tend to either equilibrium point. Moreover we show examples where the 2dimensional stable manifold of the order 2 locally indeterminate equilibrium, in the former case, and the basin of the attracting equilibrium, in the latter case, are proven to be both unbounded.
Item Type:  MPRA Paper 

Original Title:  Global analysis and indeterminacy in a twosector growth model with human capital 
Language:  English 
Keywords:  global and local indeterminacy; twosector model; endogenous growth; poverty trap; global analysis 
Subjects:  O  Economic Development, Innovation, Technological Change, and Growth > O4  Economic Growth and Aggregate Productivity > O41  One, Two, and Multisector Growth Models O  Economic Development, Innovation, Technological Change, and Growth > O1  Economic Development > O10  General E  Macroeconomics and Monetary Economics > E2  Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E24  Employment ; Unemployment ; Wages ; Intergenerational Income Distribution ; Aggregate Human Capital ; Aggregate Labor Productivity C  Mathematical and Quantitative Methods > C0  General > C02  Mathematical Methods D  Microeconomics > D9  Intertemporal Choice > D90  General C  Mathematical and Quantitative Methods > C6  Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C61  Optimization Techniques ; Programming Models ; Dynamic Analysis 
Item ID:  39079 
Depositing User:  Angelo Antoci 
Date Deposited:  28. May 2012 15:58 
Last Modified:  14. Mar 2015 09:28 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/39079 