Advertisement

Economic Theory

, Volume 21, Issue 1, pp 205–214 | Cite as

On the dynamics of an endogenous growth model with learning by doing

  • Alfred Greiner
Exposita Note

Summary.

The paper studies the local dynamics of an endogenous growth model with externalities of investment. It is demonstrated that, in case of sustained per capita growth, the competitve economy is characterized by a situation with a unique balanced growth path which is saddle point stable or by a situation with two balanced growth paths. If there are two balanced growth paths, the one with the higher growth rate is a saddle point whereas the path with the lower growth rate is either completely stable, with convergence to a rest point or limit cycle, or completely unstable. In the social optimum the existence of a balanced growth path implies that it is unique and that this path is a saddle point.

Keywords and Phrases: Endogenous growth, Learning by doing, Dynamics, Indeterminacy. 
JEL Classification Numbers: O41. 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Springer-Verlag Berlin Heidelberg 2003

Authors and Affiliations

  • Alfred Greiner
    • 1
  1. 1.Department of Economics, University of Bielefeld, P.O. Box 100131, 33501 Bielefeld, GERMANY (e-mail: agreiner@wiwi.uni-bielefeld.de) DE

Personalised recommendations