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Divergence in Economic Performance: Transitional Dynamics with Multiple Equilibria Author info | Abstract | Publisher info | Download info | Related research | Statistics Danyang Xie (Universite de Montreal, Hong Kong University of Science & Technology)
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Special pairs of the utility functions and the production functions are used in this paper to uncover the transitional dynamics in a Lucas model of growth. The main findings are as follows: A continuum of equilibria exists if the external effect of human capital in goods production is sufficiently large. The process of lagging behind, catching up with, and overtaking that we often observe in the world economy can be explained. Finally, some equilibrium paths are shown to have such complicated patterns that the dynamics conjectured by Lucas are too simple to be correct.
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Paper provided by EconWPA in its series GE, Growth, Math methods with number
0210002.
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Length: 20 pages
Date of creation: 07 Oct 2002Date of revision:
Handle: RePEc:wpa:wuwpge:0210002Note: Type of Document - PDF; prepared on PC; to print on HP; pages: 20; figures: IncludedContact details of provider: Web page: http://129.3.20.41
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Keywords: Transitional Dynamics Multiple Equilibria Lucas Model Other versions of this item:
Find related papers by JEL classification: O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models C61 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Optimization Techniques; Programming Models; Dynamic Analysis
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