Cyclically Balanced Growth Paths in a Model of Economic Growth with Endogenous Policy Switching

Andrey Akhremenko, Alexander Petrov () and Egor Yureskul ()
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Alexander Petrov: National Research University Higher School of Economics
Egor Yureskul: National Research University Higher School of Economics

HSE Working papers from National Research University Higher School of Economics

Abstract: This paper deals with a model of economic growth, which we expand to include endogenous policy switching based on retrospective voting. It is shown that under certain conditions the solution has a special form that we call a cyclically balanced growth path. This type of solution is an analogue to balanced growth paths, which often occur in growth models with constant policies. Cyclically balanced growth paths are investigated analytically, and the growth rate over the cycle has been found. Results of numerical experiments are also provided and possible empirical applications of the model are outlined

Keywords: differential equations; dynamical model; policy space; democracy; autocracy; economic growth; efficiency; public capital; growth path; retrospective voting (search for similar items in EconPapers)
JEL-codes: C61 H54 O41 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2015
New Economics Papers: this item is included in nep-fdg and nep-gro
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Citations: View citations in EconPapers (1)

Published in WP BRP Series: Economics / EC, November 2015, pages 1-29

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