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General Equilibrium Dynamics of Multi-Sector Growth Models

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Growth, Trade, and Economic Institutions

Part of the book series: Journal of Economics ((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.

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Author information

Authors and Affiliations

  1. Department of Economics, Copenhagen Business School, Solbjerg Plads 3, 2000, Frederiksberg, Denmark

    Bjarne S. Jensen

  2. Department of Mathematics, Institute for Mathematical Sciences, Universitetsparken 5, 2100, Copenhagen, Denmark

    Mogens E. Larsen

Authors
  1. Bjarne S. Jensen
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  2. Mogens E. Larsen
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Editor information

Editors and Affiliations

  1. Department of Economics, University of Helsinki, Finland

    Tapio Palokangas

  2. Department of Economics, Copenhagen Business School, Denmark

    Bjarne S. Jensen

  3. Department of Economics, Free University of Berlin, Germany

    Giacomo Corneo

  4. VATT, Helsinki, Finland

    Reino Hjerppe  & Juha Honkatukia  & 

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Jensen, B.S., Larsen, M.E. (2005). General Equilibrium Dynamics of Multi-Sector Growth Models. In: Palokangas, T., Jensen, B.S., Bös, D., Corneo, G., Hjerppe, R., Honkatukia, J. (eds) Growth, Trade, and Economic Institutions. Journal of Economics, vol 10. Springer, Vienna. https://doi.org/10.1007/3-211-26650-X_2

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  • DOI: https://doi.org/10.1007/3-211-26650-X_2

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  • Publisher Name: Springer, Vienna

  • Print ISBN: 978-3-211-00793-8

  • Online ISBN: 978-3-211-26650-2

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