Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
965881 | Journal of Macroeconomics | 2010 | 12 Pages |
Abstract
Balanced (exponential) growth cannot be generalized to a concept which would not require knife-edge conditions to be imposed on dynamic models. Already the assumption that a solution to a dynamical system (i.e. time path of an economy) satisfies a given functional regularity (e.g. quasi-arithmetic, logistic, etc.) imposes at least one knife-edge assumption on the considered model. Furthermore, it is always possible to find divergent and qualitative changes in dynamic behavior of the model - strong enough to invalidate its long-run predictions - if a certain parameter is infinitesimally manipulated.
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Authors
Jakub Growiec,