Deterministric and Stochastic Growth in the Structural Dynamic Economic Model SDEM-2
The Structural Dynamic Economic Model SDEM-2, a follow-up of the model SDEM developed earlier, is essentially an actor-based, system-dynamic model of a closed economy evolving under conditions of conflict of interests of two powerful aggregated actors: enterpreneurs and wage-earners. We derive the model equations and study the economic growth both in balanced (with neither idle physical capital nor unemployment) and unbalanced cases. In case of balanced growth we first consider an inflexible control strategy of enterpreneurs, then a more sophisticated nonlinear adaptive control strategy, and finally develop a simplified stochastic growth model. In case of unbalanced growth we consider the development of economy from the initial state characterized by substantial unemployment and examine the feasibility of one seemingly attractive and socially desirable control strategy. In view of simplicity of model equations, exact analytical solutions can be obtained in many cases, other cases being studied semi-analytically. Even the simplest versions of SDEM-2 are able to produce rather versatile trajectories of the economy, dependent on the values of model parameters and initial conditions.
|Date of creation:||Sep 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +45 6550 2233
Fax: +45 6550 1090
Web page: http://degit.sam.sdu.dk/
More information through EDIRC
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.:
- Tallman, Ellis W. & Wang, Ping, 1994.
"Human capital and endogenous growth evidence from Taiwan,"
Journal of Monetary Economics,
Elsevier, vol. 34(1), pages 101-124, August.
- Ellis W. Tallman & Ping Wang, 1990. "Human capital and endogenous growth: evidence from Taiwan," FRB Atlanta Working Paper 90-9, Federal Reserve Bank of Atlanta.
- Robert J. Barro, 1995.
"Inflation and Economic Growth,"
NBER Working Papers
5326, National Bureau of Economic Research, Inc.
- Garett Jones & W. Joel Schneider, 2005.
"Intelligence, Human Capital, and Economic Growth: A Bayesian Averaging of Classical Estimates (BACE) Approach,"
Development and Comp Systems
- Garett Jones & W. Schneider, 2006. "Intelligence, Human Capital, and Economic Growth: A Bayesian Averaging of Classical Estimates (BACE) Approach," Journal of Economic Growth, Springer, vol. 11(1), pages 71-93, 03.
- Weber, Michael & Barth, Volker & Hasselmann, Klaus, 2005. "A multi-actor dynamic integrated assessment model (MADIAM) of induced technological change and sustainable economic growth," Ecological Economics, Elsevier, vol. 54(2-3), pages 306-327, August.
- Giuseppe Folloni & Giorgio Vittadini, 2010. "Human Capital Measurement: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 24(2), pages 248-279, 04.
When requesting a correction, please mention this item's handle: RePEc:deg:conpap:c016_043. 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: (Jan Pedersen)
If references are entirely missing, you can add them using this form.