General Equilibrium Dynamics of Multi-Sector Growth Models

  • Bjarne S. Jensen
  • Mogens E. Larsen
Chapter
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Part of the Journal of Economics book series (JOURNECONOMICS, volume 10)

Abstract

This paper analyzes Walrasian general equilibrium systems and calculates the static and dynamic solutions for competitive market equilibria. The Walrasian framework encompasses the basic multi-sector growth (MSG) models with neoclassical production technologies in N sectors (industries). The endogenous behavior of all the relative prices are analyzed in detail, as are sectorial allocations of the primary factors, labor and capital. Dynamic systems of Walrasian multi-sector economies and the family of solutions (time paths) for steady-state and persistent growth per capita are parametrically characterized. The technology parameters of the capital good industry are decisive for obtaining long-run per capita growth in closed (global) economies. Brief comments are offered on the MSG literature, together with apects on the studies of industrial (structural) evolution and economic history.

Keywords

pareto effiency walrasian equilibria factor accumulation 
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Copyright information

© Springer-Verlag 2005

Authors and Affiliations

  • Bjarne S. Jensen
    • 1
  • Mogens E. Larsen
    • 2
  1. 1.Department of EconomicsCopenhagen Business SchoolFrederiksbergDenmark
  2. 2.Department of MathematicsInstitute for Mathematical SciencesCopenhagenDenmark

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