IDEAS home Printed from https://ideas.repec.org/a/bpj/germec/v10y2009i4p384-400.html
   My bibliography  Save this article

On the Dynamics of Basic Growth Models: Ratio Stability vs. Convergence and Divergence in State Space

Author

Listed:
  • Pampel Thorsten

    (Bielefeld University, Universitätsstraße 25, Bielefeld, Germany)

Abstract

We show for a class of basic growth models that convergence in ratios does not imply the pathwise convergence to the corresponding balanced growth path in the state space. We derive conditions on parameters and on the elasticity of the savings function for convergence or divergence and apply our results to the Solow model, an augmented Solow model as well as to an optimal growth model. An implication for the convergence debate is that two economies that differ only in the initial capital stock and converge in per capita terms might diverge to infinity in absolute terms.

Suggested Citation

  • Pampel Thorsten, 2009. "On the Dynamics of Basic Growth Models: Ratio Stability vs. Convergence and Divergence in State Space," German Economic Review, De Gruyter, vol. 10(4), pages 384-400, December.
    • Handle: RePEc:bpj:germec:v:10:y:2009:i:4:p:384-400
    DOI: 10.1111/j.1468-0475.2009.00487.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1468-0475.2009.00487.x
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1111/j.1468-0475.2009.00487.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:germec:v:10:y:2009:i:4:p:384-400. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.