Freni, Giuseppe (2016): Back to the Sixties: A Note on Multi-Primary-Factor Linear Models with Homogeneous Capital.
Preview |
PDF
MPRA_paper_73677.pdf Download (668kB) | Preview |
Abstract
This paper extends Bruno's (1967) one capital good two-sector growth model with discrete technology by allowing multiple primary factors of production. While the existence of an optimal steady state is established for any positive rate of discount, an example in which three "modified golden rules" exist shows that the optimal steady state is non necessarily unique. The extended model provides a simple exemplification of the more general principle that the presence of multiple primary factors of production into homogeneous capital models can definitively result into the same complications that arise when there is joint production.
Item Type: | MPRA Paper |
---|---|
Original Title: | Back to the Sixties: A Note on Multi-Primary-Factor Linear Models with Homogeneous Capital |
English Title: | Back to the Sixties: A Note on Multi-Primary-Factor Linear Models with Homogeneous Capital |
Language: | English |
Keywords: | Homogeneous capital, Multiple primary factors, Linear activity models, Duality. |
Subjects: | C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C62 - Existence and Stability Conditions of Equilibrium O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models |
Item ID: | 73677 |
Depositing User: | Giuseppe Freni |
Date Deposited: | 18 Sep 2016 09:07 |
Last Modified: | 03 Oct 2019 17:44 |
References: | Atkeson, A., & Kehoe, P. J. 2000. Path of development for early- and late- bloomers in a dynamic Heckscher-Ohlin model. Federal Reserve Bank of Minneapolis Staff Report 256. Brock, W. A. 1973. Some results on the uniqueness of steady states in multi- sector models of optimum growth when future utilities are discounted. International Economic Review, 14(3), 535–59. Brock, W. A., & Burmeister, E. 1976. Regular economies and conditions for uniqueness of steady states in optimal multi-sector economic models. International Economic Review, 17(1), 105–21. Bruno, M. 1967. Optimal accumulation in discrete capital models. Pages 181– 218 of: Shell, K. (ed), Essays on the Theory of Optimal Economic Growth. Cambridge: MIT Press. Burmeister, E. 1975. Many primary factors in non-joint production economies. Economic Record, 51(4), 486–512. Burmeister, E. 1981. On the uniqueness of dinamically efficient steady states. International Economic Review, 22(1), 211–19. Burmeister, E., & Long, N. V. 1977. On some unresolved questions in capital theory: an application of Samuelson’s correspondence principle. Quarterly Journal of Economics, 91(2), 289–314. Burmeister, E., & Turnovsky, S. J. 1972. Capital deepening response in an economy with heterogeneous capital goods. American Economic Review, 62(5), 842–53. Carlson, D. A., Haurie, A. B., & Leizarowitz, A. 1991. Infinite Horizon Optimal Control. Berlin Heidelberg: Springer-Verlag. Dantzig, G.B., & Manne, A. 1974. A complementarity algorithm for an optimal capital path with invariant proportions. Journal of Economic Theory, 9(3), 312–23. Etula, E. 2008. The two-sector von Thunen original marginal productivity model of capital; and beyond. Metroeconomica, 59(1), 85–104. Franklin, J.N. 1980. Linear and Nonlinear Programming, Fixed-Point Theorems. Methods of Mathematical economics. New York: Springer Science + Business Media, LLC. Freni, G. 1991. Capitale tecnico nei modelli dinamici ricardiani. Studi Economici, 44, 141–59. Freni, G. 1997. Equilibrio dinamico di produzione e prezzi in un modello unisettoriale. Economia politica, XIV(3), 399–438. Freni, G., Gozzi, F., & Salvadori, N. 2003. Endogenous growth in a multi- sector economy. Pages 60–80 of: Salvadori, N. (ed), The Theory of Economic Growth: a Classical Perspective. Cheltenham, UK: Edward Elgar. Freni, G., Gozzi, F., & Salvadori, N. 2006. Existence of optimal strategies in linear multisector models. Economic Theory, 29, 25–48. Freni, G., Gozzi, F., & Pignotti, C. 2008. A multisector AK model with endogenous growth: value function and optimality conditions. Journal of Mathematical Economics, 44, 55–86. Guillo, M. D., & Perez-Sebastian, F. 2015. Convergence in a dynamic Heckscher- Ohlin model with land. Review of Development Economics, 19(3), 725–34. Leizarowitz, A. 1985. Existence of Overtaking Optimal Trajectories for Problems with Convex Integrands. Mathematics of Operations Research, 10(3), 450–461. Liviatan, N., & Samuelson, P. A. 1969. Note on turnpikes: stable and unstable. Journal of Economic Theory, 1, 454–75. Nishimura, K., Venditti, A., & Yano, M. 2006. Endogenous fluctuations in two-country models. Japanese Economic Review, 57(4), 516–32. Pasinetti, L.L. 1960. A mathematical formulation of the Ricardian system. Review of Economic Studies, 27, 78–98. Samuelson, P. A . 1959. A modern treatment of the Ricardian theory. Quarterly Journal of Economics, 73(1-2), 1–35, 217–31. Samuelson, P. A., & Burmeister, E. 2016. Sraffa-Samuelson marginalism in the multi-primary-factor case: a fourth exploration. Pages 160–3 of: Giuseppe Freni, Heinz D. Kurz, Andrea Mario Lavezzi, & Signorino, Rodolfo (eds), Economic Theory and its History: Essay in Honour of Neri Salvadori. London and New York: Routledge. Samuelson, P. A, & Etula, E. 2006. Complete work-up of the one-sector scalar- capital theory of interest rate: Third installment auditing Sraffa’s never completed ”Critique of Modern Economic Theory”. Japan and the World Economy, 18(3), 331–56. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/73677 |
Available Versions of this Item
- Back to the Sixties: A Note on Multi-Primary-Factor Linear Models with Homogeneous Capital. (deposited 18 Sep 2016 09:07) [Currently Displayed]