TY - JOUR
T1 - Divergence in Economic Performance
T2 - Transitional Dynamics with Multiple Equilibria
AU - Xie, Danyang
PY - 1994/6
Y1 - 1994/6
N2 - Special pairs of the utility functions and the production functions are used in this paper to uncover the transitional dynamics in a Lucas model of growth. The main findings are as follows: A continuum of equilibria exists if the external effect of human capital in goods production is sufficiently large. The process of lagging behind, catching up with, and overtaking that we often observe in the world economy can be explained. Finally, some equilibrium paths are shown to have such complicated patterns that the dynamics conjectured by Lucas are too simple to be correct. Journal of Economic Literature Classification Numbers: O41, C61.
AB - Special pairs of the utility functions and the production functions are used in this paper to uncover the transitional dynamics in a Lucas model of growth. The main findings are as follows: A continuum of equilibria exists if the external effect of human capital in goods production is sufficiently large. The process of lagging behind, catching up with, and overtaking that we often observe in the world economy can be explained. Finally, some equilibrium paths are shown to have such complicated patterns that the dynamics conjectured by Lucas are too simple to be correct. Journal of Economic Literature Classification Numbers: O41, C61.
UR - https://www.webofscience.com/wos/woscc/full-record/WOS:A1994NU76900005
UR - https://openalex.org/W2004760386
UR - https://www.scopus.com/pages/publications/0003115083
U2 - 10.1006/jeth.1994.1034
DO - 10.1006/jeth.1994.1034
M3 - Journal Article
SN - 0022-0531
VL - 63
SP - 97
EP - 112
JO - Journal of Economic Theory
JF - Journal of Economic Theory
IS - 1
ER -
