The analytical solution of balanced growth of non-linear dynamic multi-sector economic model
AbstractIn a one-sector neoclassical dynamic economic growth model, a reasonable ratio of investment to consumption exists, i.e., the “Golden Rule of Consumption”. This study is to extend one-sector neoclassical growth model to a multi-sector one. It is assumed that both the production function and the utility function are of Cobb–Douglas type, and the analytical expression of the balanced growth solution of the multi-sector model is provided, mainly including analytical expressions of the optimal distribution coefficient of fixed capital investment, the optimal distribution coefficient of labor hour, the proportion of production, the economic growth rate, the rate of change of the price index, and rental rates of different fixed capital.
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Bibliographic InfoArticle provided by Elsevier in its journal Economic Modelling.
Volume (Year): 28 (2011)
Issue (Month): 1 ()
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Web page: http://www.elsevier.com/locate/inca/30411
CGE; Neoclassical economic growth model; Multi-sector dynamic model; Golden Rule of Consumption; Optimal accumulation rate;
Find related papers by JEL classification:
- C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
- E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
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- OA. Carboni & P. Russu, 2012.
"A Model of Economic Growth with Public Finance: Dynamics and Analytic Solution,"
Working Paper CRENoS
201229, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Oliviero A. Carboni & Paolo Russu, 2013. "A Model of Economic Growth with Public Finance: Dynamics and Analytic Solution," International Journal of Economics and Financial Issues, Econjournals, vol. 3(1), pages 1-13.
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