Advanced Search
MyIDEAS: Login to save this paper or follow this series

Complex dynamics in a Pasinetti-Solow model of Growth and distribution

Contents:

Author Info

  • Pasquale Commendatore

Abstract

The one-sector neoclassical growth model (Solow, 1956,RES) can generate only simple dynamics. The dynamic properties of the Solow model follow from the saving behaviour and the neoclassical technology. As shown by Day (1982, AER), when average savings are allowed to vary, the discrete-time version of the Solow model may generate Chaos. Recently, Böhm and Kaas (2000, JEDC) investigate the dynamics of a discrete-time Solow model with different but constant saving propensities attached to factor shares, wages and profits, and a slightly more general technology than the neoclassical one. Their assumption on saving behaviour corresponds to that proposed by Kaldor (1956, RES). The Solow model so revised gives rise to complex dynamic behaviour. We study some of the properties of a discrete-time version of the two-class model of growth and distribution proposed by Pasinetti (1962, RES) and Samuelson and Modigliani (1966, RES) with a CES production technology. We consider two groups of agents, workers and capitalists. The first saves out of wages and profits by applying to these income sources different propensities to save. Capitalists’ saving originates only from capital income. The resulting model is two-dimensional. Differently from the one-dimensional model proposed by Böhm and Kaas, distributive processes occur not only between factor shares but also between the two groups existing in the economy. We identify through simulations a large variety of dynamic behaviours

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Paper provided by Society for Computational Economics in its series Computing in Economics and Finance 2004 with number 279.

as in new window
Length:
Date of creation: 11 Aug 2004
Date of revision:
Handle: RePEc:sce:scecf4:279

Contact details of provider:
Email:
Web page: http://comp-econ.org/
More information through EDIRC

Related research

Keywords: Growth; Endogenous Cycles; Income Distribution;

Other versions of this item:

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Juan Sebastián Pereyra & Juan Gabriel Brida, 2008. "The Solow model in discrete time and decreasing population growth rate," Economics Bulletin, AccessEcon, vol. 3(41), pages 1-14.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:sce:scecf4:279. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.