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Nonlinear Dynamics in the Solow Model with Bounded Population Growth and Time‐to‐Build Technology

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  • Luca Guerrini
  • Mauro Sodini

Abstract

The aim of this paper is to show that the Solow model equipped by realistic assumptions on technology and population dynamics is capable of explaining a well‐known stylised fact of growth, that is, the presence of persistent oscillations of demoeconomic variables. In particular, our analysis shows that the coexistence of delays between (i) new investment and production and (ii) the birth date and the recruitment in the labour force is a source of cyclical behaviour in capital accumulation.

Suggested Citation

  • Luca Guerrini & Mauro Sodini, 2013. "Nonlinear Dynamics in the Solow Model with Bounded Population Growth and Time‐to‐Build Technology," Abstract and Applied Analysis, John Wiley & Sons, vol. 2013(1).
    • Handle: RePEc:wly:jnlaaa:v:2013:y:2013:i:1:n:836537
    DOI: 10.1155/2013/836537
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    References listed on IDEAS

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    1. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    2. Luciano Fanti & Piero Manfredi, 2003. "The Solow¡¯S Model With Endogenous Population: A Neoclassical Growth Cycle Model," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 28(2), pages 103-115, December.
    3. Feichtinger, Gustav & Dockner, Englebert J, 1990. "Capital Accumulation, Endogenous Population Growth, and Easterlin Cycles," Journal of Population Economics, Springer;European Society for Population Economics, vol. 3(2), pages 73-87, August.
    4. Paul Zak, 1999. "Kaleckian Lags in General Equilibrium," Review of Political Economy, Taylor & Francis Journals, vol. 11(3), pages 321-330.
    5. Marek Szydłowski & Adam Krawiec, 2004. "A note on Kaleckian lags in the Solow model," Review of Political Economy, Taylor & Francis Journals, vol. 16(4), pages 501-506.
    6. Luca Vincenzo Ballestra & Luca Guerrini & Graziella Pacelli, 2013. "Stability Switches and Hopf Bifurcation in a Kaleckian Model of Business Cycle," Abstract and Applied Analysis, John Wiley & Sons, vol. 2013(1).
    7. Asea, Patrick K. & Zak, Paul J., 1999. "Time-to-build and cycles," Journal of Economic Dynamics and Control, Elsevier, vol. 23(8), pages 1155-1175, August.
    8. Day, Richard H & Kim, Kyoo-Hong & Macunovich, Diane, 1989. "Complex Demoeconomic Dynamics," Journal of Population Economics, Springer;European Society for Population Economics, vol. 2(2), pages 139-159.
    9. Luca Vincenzo Ballestra & Luca Guerrini & Graziella Pacelli, 2013. "Stability Switches and Hopf Bifurcation in a Kaleckian Model of Business Cycle," Abstract and Applied Analysis, Hindawi, vol. 2013, pages 1-8, August.
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    Cited by:

    1. Massimiliano Ferrara & Luca Guerrini & Giovanni Molica Bisci, 2013. "Center Manifold Reduction and Perturbation Method in a Delayed Model with a Mound‐Shaped Cobb‐Douglas Production Function," Abstract and Applied Analysis, John Wiley & Sons, vol. 2013(1).

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