 Transition dynamics in endogenous recombinant growth models by means of projection methodsPOLIS Working Papers from Institute of Public Policy and Public Choice - POLIS Abstract: This paper provides a step further in the computation of the transition path of a continuous time endogenous growth model discussed by Privileggi (2010) – based on the setting first introduced by Tsur and Zemel (2007) – in which knowledge evolves according to the Weitzman (1998) recombinant process. A projection method, based on the least squares of the residual function corresponding to the ODE defining the optimal policy of the 'detrended' model, allows for the numeric approximation of such policy for a positive Lebesgue measure range of values of the efficiency parameter characterizing the probability function of the recombinant process. Although the projection method's performance rapidly degenerates as one departs from a benchmark value for the efficiency parameter, we are able to numerically compute time-path trajectories which are sufficiently regular to allow for sensitivity analysis under changes in parameters' values. Keywords: Knowledge Production; Endogenous Recombinant Growth; Transition Dynamics; Projection Methods; Least Squares. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:uca:ucapdv:153 Access Statistics for this paper More papers in POLIS Working Papers from Institute of Public Policy and Public Choice - POLIS |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.