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Stability, Global Dynamics and Markov Equilibrium in Models of Economic Growth Author info | Abstract | Publisher info | Download info | Related research | Statistics García-Belenguer, Fernando () (Departamento de Análisis Económico (Teoría e Historia Económica). Universidad Autónoma de Madrid.)
This paper studies the local and a global dynamics of two-sector models of endogenous growth with economy-wide external effects and taxes on capital and labor. The local analysis classifies the parameter space depending on the number of stationary solutions and local stability of equilibria. Taxes on labor and subsidies to education may determine the existence of poverty traps and indeterminacy. The global analysis shows that if externalities and taxes are not too big then the equilibrium path is monotone and therefore a continuous Markov equilibrium can be defined.
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Paper provided by Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History) in its series Working Papers in Economic Theory with number
2006/05.
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Length: 47 pages
Date of creation: Mar 2006Date of revision:
Handle: RePEc:uam:wpaper:200605Contact details of provider: Web page: http://www.uam.es/departamentos/economicas/analecon/default.html More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Raúl López-Pérez).
Keywords: competitive equilibrium ; stability ; Markov equilibrium ; externalities ; taxes ; Other versions of this item:
Find related papers by JEL classification: C62 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Existence and Stability Conditions of Equilibrium E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
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