Global Endogenous Growth and Distributional Dynamics
AbstractIn this paper we deal with the global distribution of capital and output across time. We supply empirical support to model it as a partial differential equation, if the support of the distribution is related to an initial ranking of the economies. If we consider a distributional extension of the AK model we prove that it displays both global endogenous growth and transitional convergence in a distributional sense. This property can also be shared by a distributional extension of the Ramsey model. We conduct a qualitative analysis of the distributional dynamics and prove that If the technology displays mild decreasing marginal returns we can have long run growth if a diffusion induced bifurcation is crossed. This means that global growth can exist even in the case in which the local production functions are homogeneous and display decreasing returns to scale.
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Bibliographic InfoPaper provided by DEGIT, Dynamics, Economic Growth, and International Trade in its series DEGIT Conference Papers with number c017_053.
Length: 44 pages
Date of creation: Sep 2012
Date of revision:
optimal control of parabolic PDE; endogenous growth; diffusion induced bifurcation;
Other versions of this item:
- Brito, Paulo, 2011. "Global endogenous growth and distributional dynamics," MPRA Paper 41653, University Library of Munich, Germany.
- C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
- D9 - Microeconomics - - Intertemporal Choice and Growth
- E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
- R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
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