Global endogenous growth and distributional dynamics

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper we deal with the global distribution of capital and output across time. We supply empirical support to model it as a partial differential equation, if the support of the distribution is related to an initial ranking of the economies. If we consider a distributional extension of the AK model we prove that it displays both global endogenous growth and transitional convergence in a distributional sense. This property can also be shared by a distributional extension of the Ramsey model. We conduct a qualitative analysis of the distributional dynamics and prove that If the technology displays mild decreasing marginal returns we can have long run growth if a diffusion induced bifurcation is crossed. This means that global growth can exist even in the case in which the local production functions are homogeneous and display decreasing returns to scale.

Keywords: optimal control of parabolic PDE; endogenous growth; diffusion induced bifurcation (search for similar items in EconPapers)
JEL-codes: C6 D9 E1 R1 (search for similar items in EconPapers)
Date: 2011-11-01
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Citations: View citations in EconPapers (5)

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Related works:
Working Paper: Global Endogenous Growth and Distributional Dynamics (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:41653

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