A note on the closed-form solution to the Lucas-Uzawa model with externality
Ruiz-Tamarit [2008. The closed-form solution for a family of four-dimension nonlinear MHDS. Journal of Economic Dynamics and Control 32, 1000-1014] provides a closed-form solution to the two-sector model of endogenous growth with externalities. He assumes that the coefficient of the relative risk aversion is equal to the physical capital share, but this assumption is empirically and theoretically implausible. This note uses the result of Boucekkine and Ruiz-Tamarit [2008. Special functions for the study of economic dynamics: the case of the Lucas-Uzawa model. Journal of Mathematical Economics 44, 33-54] and derives a closed-form solution without setting the parametric assumption. The solution path is expressed in terms of the Gauss hypergeometric functions.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- José Ramón Ruiz-Tamarit, .
"The Closed-Form Solution for a Family of Four-Dimension Non-Linear MHDS,"
- Ruiz-Tamarit, José Ramón, 2008. "The closed-form solution for a family of four-dimension nonlinear MHDS," Journal of Economic Dynamics and Control, Elsevier, vol. 32(3), pages 1000-1014, March.
- Danyang Xie, 2002.
"Divergence in Economic Performance: Transitional Dynamics with Multiple Equilibria,"
GE, Growth, Math methods
- Xie Danyang, 1994. "Divergence in Economic Performance: Transitional Dynamics with Multiple Equilibria," Journal of Economic Theory, Elsevier, vol. 63(1), pages 97-112, June.
- Campbell Leith & Jim Malley, 2002.
"Estimated General Equilibrium Models for the Evaluation of Monetary Policy in the US and Europe,"
CESifo Working Paper Series
699, CESifo Group Munich.
- Leith, Campbell & Malley, Jim, 2005. "Estimated general equilibrium models for the evaluation of monetary policy in the US and Europe," European Economic Review, Elsevier, vol. 49(8), pages 2137-2159, November.
- Campbell leith & Jim Malley, 2002. "Estimated General Equilibrium Models for the Evaluation of Monetary Policy in the US and Europe," Working Papers 2001_16, Business School - Economics, University of Glasgow.
- Hiraguchi, Ryoji, 2009. "A solution to the Lucas-Uzawa model with increasing returns to scale: Note," Economic Modelling, Elsevier, vol. 26(5), pages 831-834, September.
- Cysne, Rubens Penha, 2006. "A note on the non-convexity problem in some shopping-time and human-capital models," Journal of Banking & Finance, Elsevier, vol. 30(10), pages 2737-2745, October.
- Benhabib Jess & Perli Roberto, 1994. "Uniqueness and Indeterminacy: On the Dynamics of Endogenous Growth," Journal of Economic Theory, Elsevier, vol. 63(1), pages 113-142, June.
- Chilarescu, Constantin, 2008. "An analytical solutions for a model of endogenous growth," Economic Modelling, Elsevier, vol. 25(6), pages 1175-1182, November.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Caballe, Jordi & Santos, Manuel S, 1993. "On Endogenous Growth with Physical and Human Capital," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 1042-67, December.
- Hiraguchi, Ryoji, 2009. "Non-concavity problems in the dynamic macroeconomic models: A note," Journal of Banking & Finance, Elsevier, vol. 33(3), pages 568-572, March.
When requesting a correction, please mention this item's handle: RePEc:eee:dyncon:v:33:y:2009:i:10:p:1757-1760. 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: (Zhang, Lei)
If references are entirely missing, you can add them using this form.