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A Multi-sector Nonlinear Dynamic Input-Output Model with Human Capital

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  • Jin Shui Zhang
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    Abstract

    In this paper, a two-sector model of endogenous growth is extended to a multi-sector nonlinear dynamic input-output model. If the model is on its balanced growth path (where prices - but not quantities - are assumed constant over time), it can be shown that the linear dynamic Leontief model is a special case. At the same time, on its balanced growth path, our model can be interpreted as a CGE model. The model distinguishes n + 1 sectors: n sectors producing physical goods, and one sector producing new human capital. A method is given for calculating the growth rate of GNP, the profit rate, the prices of goods, and the level of production when the model is on its balanced growth path. We point out the relation between the balanced growth rate and the profit rate.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/09535310802075463
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Economic Systems Research.

    Volume (Year): 20 (2008)
    Issue (Month): 2 ()
    Pages: 223-237

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    Handle: RePEc:taf:ecsysr:v:20:y:2008:i:2:p:223-237

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    Related research

    Keywords: Computable general equilibrium; balanced growth; Leontief linear input-output model; human capital;

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    Cited by:
    1. Li, Wu, 2010. "Cobb-Douglas生产函数和效用函数下的均衡分析
      [An Equilibrium Analysis under Cobb-Douglas Production and Utility Functions]
      ," MPRA Paper 23070, University Library of Munich, Germany.
    2. Li, Wu, 2010. "A Study on Dynamic General Equilibrium under the Classical Growth Framework," MPRA Paper 25540, University Library of Munich, Germany.

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