Complex dynamics in a Pasinetti-Solow model of growth and distribution
AbstractIn this paper, we study some of the properties of a discrete-time version of the two-class model of growth and distribution proposed by Pasinetti (1962) and Samuelson and Modigliani (1966) with a concave production function of the CES type. Two distinct groups of agents, workers and capitalists, exist. Following Chiang (1973), we assume that the first group saves out of wages and profits by applying to these income sources propensities to save which are not necessarily equal. Capitalists’ saving originates only from capital income. The model is two-dimensional involving distributive processes that occur not only between factor shares but also between the two groups in the economy. We explore through simulations the large variety of dynamic behaviours that emerge from this formulation.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series Macroeconomics with number 0511006.
Length: 28 pages
Date of creation: 03 Nov 2005
Date of revision:
Note: Type of Document - doc; pages: 28
Contact details of provider:
Web page: http://188.8.131.52
Growth; Income distribution; Complex dynamics; Chaos;
Other versions of this item:
- Pasquale Commendatore, 2004. "Complex dynamics in a Pasinetti-Solow model of Growth and distribution," Computing in Economics and Finance 2004 279, Society for Computational Economics.
- E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.