Equilibrium Determinacy of a Two-Sector AK Model
AbstractThis paper explores a two-sector model of endogenous growth with AK technologies and production externalities. Unlike the standard one-sector AK model, the two-sector model may involve the relative price dynamics, so that there may exist transitional processes. It is shown that under certain conditions for the relative magnitudes of factor intensities, the balanced growth equilibrium exhibits local indeterminacy.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 17323.
Date of creation: Mar 1998
Date of revision:
Two-Sector AK model; endogenous growth; equilibrium determinacy;
Find related papers by JEL classification:
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
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