Transitional Dynamics and Indeterminacy of Equilibria in an Endogenous Growth Model with a Public Input

Theodore Palivos, Chong Yip and Junxi Zhang

Review of Development Economics, 2003, vol. 7, issue 1, 86-98

Abstract: The authors analyze an endogenous growth model with economy–wide increasing returns, in which a public input is essential for private production. Within such a framework, it is shown that a continuum of equilibria and global indeterminacy can arise for reasonable parameter values, simply due to the presence of endogenous public policy. This can potentially account for “leapfrogging” or retroceding growth experiences. It is demonstrated how fiscal policy can serve as a selection device among different convergent paths.

Date: 2003
References: Add references at CitEc
Citations: View citations in EconPapers (42)

Downloads: (external link)
https://doi.org/10.1111/1467-9361.00177

Related works:
Working Paper: Transitional Dynamics and Indeterminacy of Equilibria is an Endogenous Growth Model with a Public Input (2000)
Working Paper: Transitional Dynamics and Indeterminacy of Equilibria in an Endogenous Growth Model with Public Input (1994)
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:rdevec:v:7:y:2003:i:1:p:86-98

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1363-6669

Access Statistics for this article

Review of Development Economics is currently edited by E. Kwan Choi

More articles in Review of Development Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().