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Effects of temporal heterogeniety in the Baumol-Wolff productivity growth model

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  • Hassan Sedaghat

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    (Department of Mathematical Sciences, Virginia Commonwealth University, Richmond, VA 23284-2014, USA)

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    Abstract

    In their utilization of R&D (information) output, different sectors of a heterogeneous industry display different reaction times. This paper analyzes the effects of this temporal heterogeniety on output and productivity for an extended version of the Baumol-Wolff model. Results include conditions implying persistent, non-decaying oscillations in the output and hence also in the productivity rate.

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    Bibliographic Info

    Article provided by Springer in its journal Economic Theory.

    Volume (Year): 15 (2000)
    Issue (Month): 2 ()
    Pages: 491-498

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    Handle: RePEc:spr:joecth:v:15:y:2000:i:2:p:491-498

    Note: Received: January 26, 1998; revised version: January 8, 1999
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    Related research

    Keywords: Heterogeneous sectors; Reaction times; Productivity rate; Higher order difference equation; Instability; Oscillation.;

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