Note on global dynamics and imbalance effects in the Lucas–Uzawa model

Raouf Boucekkine (), Blanca Martinez () and José Ramón Ruiz‐Tamarit
Authors registered in the RePEc Author Service: José Ramón Ruiz-Tamarit

International Journal of Economic Theory, 2008, vol. 4, issue 4, 503-518

Abstract: In the traditional literature on the Lucas–Uzawa model, it is proved that in the so‐called normal parametric case, human capital stock grows at a rate greater than its long‐run counterpart in the neighbourhood of the long‐run balanced growth path. We first prove that the claim is true outside the neighborhood of balanced growth paths. More importantly, we identify a crucial asymmetry: whatever the parametric case considered, physical capital stock always grows at a rate lower than its long‐run counterpart when the ratio of physical to human capital is above its long‐run value.

Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
https://doi.org/10.1111/j.1742-7363.2008.00091.x

Related works:
Working Paper: Note on global dynamics and imbalance effects in the Lucas-Uzawa model (2009)
Working Paper: A note on global dynamics and imbalance effects in the Lucas-Uzawa model (2007)
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:bla:ijethy:v:4:y:2008:i:4:p:503-518

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1742-7355

Access Statistics for this article

International Journal of Economic Theory is currently edited by Kazuo Nishimura and Makoto Yano

More articles in International Journal of Economic Theory from The International Society for Economic Theory
Bibliographic data for series maintained by Wiley Content Delivery ().