Complex dynamics in a Pasinetti-Solow model of growth and distribution
In this paper, we study some of the properties of a discrete-time version of the two-class model of growth and distribution proposed by Pasinetti (1962) and Samuelson and Modigliani (1966) with a concave production function of the CES type. Two distinct groups of agents, workers and capitalists, exist. Following Chiang (1973), we assume that the first group saves out of wages and profits by applying to these income sources propensities to save which are not necessarily equal. Capitalists’ saving originates only from capital income. The model is two-dimensional involving distributive processes that occur not only between factor shares but also between the two groups in the economy. We explore through simulations the large variety of dynamic behaviours that emerge from this formulation.
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpma:0511006. 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: (EconWPA)
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.