The analytical solution of balanced growth of non-linear dynamic multi-sector economic model
In a one-sector neoclassical dynamic economic growth model, a reasonable ratio of investment to consumption exists, i.e., the “Golden Rule of Consumption”. This study is to extend one-sector neoclassical growth model to a multi-sector one. It is assumed that both the production function and the utility function are of Cobb–Douglas type, and the analytical expression of the balanced growth solution of the multi-sector model is provided, mainly including analytical expressions of the optimal distribution coefficient of fixed capital investment, the optimal distribution coefficient of labor hour, the proportion of production, the economic growth rate, the rate of change of the price index, and rental rates of different fixed capital.
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.:
- Herrendorf, Berthold & Valentinyi, Akos, 2002.
"On the Stability of the Two-Sector Neoclassical Growth Model with Externalities,"
CEPR Discussion Papers
3435, C.E.P.R. Discussion Papers.
- Herrendorf, Berthold & Valentinyi, Akos, 2006. "On the stability of the two-sector neoclassical growth model with externalities," Journal of Economic Dynamics and Control, Elsevier, vol. 30(8), pages 1339-1361, August.
- Berthold Herrendorf & Akos Valentinyi, "undated". "On the Stability of the Two-Sector Neoclassical Growth Model with Externalities," Working Papers 2167721, Department of Economics, W. P. Carey School of Business, Arizona State University.
- Victor Ginsburgh & Michiel Keyzer, 2002.
"The structure of applied general equilibrium models,"
ULB Institutional Repository
2013/3313, ULB -- Universite Libre de Bruxelles.
- Victor Ginsburgh & Michiel Keyzer, 2002. "The Structure of Applied General Equilibrium Models," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262571579.
- Victor Ginsburgh & Michiel Keyzer, 1997. "The structure of applied general equilibrium models," ULB Institutional Repository 2013/1653, ULB -- Universite Libre de Bruxelles.
- Hakenes, Hendrik & Irmen, Andreas, 2008.
"Neoclassical growth and the "trivial" steady state,"
Journal of Macroeconomics,
Elsevier, vol. 30(3), pages 1097-1103, September.
- Hakenes, Hendrik & Irmen, Andreas, 2005. "Neoclassical Growth and the 'Trivial' Steady State," CEPR Discussion Papers 4943, C.E.P.R. Discussion Papers.
- Shoven,John B. & Whalley,John, 1992.
"Applying General Equilibrium,"
Cambridge University Press, number 9780521319867, May.
- Zou, Benteng, 2006. "Vintage technology, optimal investment and technology adoption," Economic Modelling, Elsevier, vol. 23(3), pages 515-533, May.
- repec:kap:iaecre:v:10:y:2004:i:4:p:257-264 is not listed on IDEAS
- Di Vita, Giuseppe, 2008. "Capital accumulation, interest rate, and the income-pollution pattern. A simple model," Economic Modelling, Elsevier, vol. 25(2), pages 225-235, March.
- Olivier Jean Blanchard & Stanley Fischer, 1989. "Lectures on Macroeconomics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262022834.
- Chilarescu, Constantin, 2008. "An analytical solutions for a model of endogenous growth," Economic Modelling, Elsevier, vol. 25(6), pages 1175-1182, November.
- Rose, Adam, 1995. "Input-output economics and computable general equilibrium models," Structural Change and Economic Dynamics, Elsevier, vol. 6(3), pages 295-304, August.
- Zhang, Jin shui, 2001. "Iterative method for finding the balanced growth solution of the non-linear dynamic input-output model and the dynamic CGE model," Economic Modelling, Elsevier, vol. 18(1), pages 117-132, January.
- Li, Jinlu & Lin, Shuanglin, 2008. "Existence and uniqueness of steady-state equilibrium in a two-sector overlapping generations model," Journal of Economic Theory, Elsevier, vol. 141(1), pages 255-275, July.
- Philippe Aghion & Steven Durlauf (ed.), 2005. "Handbook of Economic Growth," Handbook of Economic Growth, Elsevier, edition 1, volume 1, number 1, December.
- Stephen J. Turnovsky, 1997. "International Macroeconomic Dynamics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262201119.
- Chander, Parkash, 1983. "The nonlinear input-output model," Journal of Economic Theory, Elsevier, vol. 30(2), pages 219-229, August.
- Miguel-Angel Martín & Agustín Herranz, 2004. "Human capital and economic growth in Spanish regions," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 10(4), pages 257-264, November.
- Fujimoto, Takao, 1986. "Non-linear leontief models in abstract spaces," Journal of Mathematical Economics, Elsevier, vol. 15(2), pages 151-156, April.
- J. B. Taylor & M. Woodford (ed.), 1999. "Handbook of Macroeconomics," Handbook of Macroeconomics, Elsevier, edition 1, volume 1, number 1.
When requesting a correction, please mention this item's handle: RePEc:eee:ecmode:v:28:y:2011:i:1:p:410-421. 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: (Shamier, Wendy)
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.