Homothetic Multi-Sector Growth Models

Bjarne S. Jensen ()
Additional contact information
Bjarne S. Jensen: University of Southern Denmark (SDU)

Chapter Chapter 19 in The Elements and Dynamic Systems of Economic Growth and Trade Models, 2025, pp 557-585 from Springer

Abstract: Abstract Multi-sector growth (MSG) models have a special aura which is shared with computable general equilibrium (CGE) models. Both of them, with their many sectors (industries and goods), are known as trying to convert Walrasian general equilibrium systems from an abstract economy representation into workable models with industrial structures changing as actually observed. Yet they are plagued by severe problems. First, they are difficult subjects involving systems of nonlinear equations. Second, their prevalent numerical (algorithmic) methodology offers little in the way of showing a clear overall picture and understanding the plethora of numbers pouring out from model simulations. The great wood is not seen for all the trees. Hence, the main objective is to set out comparative static and dynamic systems for succinctly stating and explicitly solving MSG models. The Walrasian general equilibrium is completely stated by one equation and the multi-sector dynamics by one differential equation. Benchmark solutions are shown for three CES (constant elasticity of substitution) parameter regimes of a ten-sector general equilibrium model.

Keywords: Homothetic consumer demands, Multi-sector growth (MSG) models; Computable general equilibrium solutions, CES ten-sector economy time paths (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-52493-6_19

Ordering information: This item can be ordered from
http://www.springer.com/9783031524936

DOI: 10.1007/978-3-031-52493-6_19

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().