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Explicit Transitional Dynamics in Growth Models

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  • Danyang Xie

Abstract

Transitional dynamics in growth models have been subject to much attention recently. With a few exceptions, existing studies rely on computational techniques. This paper uses a set of examples to illustrate that qualitative insights on the transitional dynamics can be gained at the expense of using special utility-production pairs. In continuous time framework, necessary and sufficient conditions are established for a utility-production pair to yield explicit dynamics. These conditions are potentially useful for applications in other dynamic settings.

Suggested Citation

  • Danyang Xie, 2002. "Explicit Transitional Dynamics in Growth Models," GE, Growth, Math methods 0207003, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpge:0207003
    Note: Type of Document - Acrobat PDF; prepared on PC; to print on HP; pages: 24; figures: none
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/ge/papers/0207/0207003.pdf
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    References listed on IDEAS

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    7. Bennett T. McCallum, 1988. "Real Business Cycle Models," NBER Working Papers 2480, National Bureau of Economic Research, Inc.
    8. Mino, Kazuo, 2003. "Human Capital Formation and Patterns of Growth with Multiple Equilibria," MPRA Paper 58146, University Library of Munich, Germany.
    9. Casey B. Mulligan & Xavier Sala-i-Martin, 1993. "Transitional Dynamics in Two-Sector Models of Endogenous Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 108(3), pages 739-773.
    10. Devarajan, Shantayanan & Danyang, Xie & Zou, Heng-fu, 1998. "Should public capital be subsidized or provided?," Journal of Monetary Economics, Elsevier, vol. 41(2), pages 319-331, April.
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    More about this item

    Keywords

    Transitional Dynamics; Growth;

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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