Stability, global dynamics and Markov equilibrium in models of economic growth
Entity
UAM. Departamento de Análisis Económico, Teoría Económica e Historia EconómicaDate
2006-03Serie/Num.
Economic Analysis Working Paper Series. 05/2006Subjects
competitive equilibrium; stability; Markov equilibrium; externalities; taxes; EconomíaAbstract
This paper studies the local and a global dynamics of two-sector models of endogenous
growth with economy-wide external effects and taxes on capital and labor. The local analysis
classifies the parameter space depending on the number of stationary solutions and local
stability of equilibria. Taxes on labor and subsidies to education may determine the existence
of poverty traps and indeterminacy. The global analysis shows that if externalities and taxes
are not too big then the equilibrium path is monotone and therefore a continuous Markov
equilibrium can be defined
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Google Scholar:García-Belenguer Campos, Fernando
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