Knife-edge conditions in the modeling of long-run growth regularities

Jakub Growiec

Journal of Macroeconomics, 2010, vol. 32, issue 4, 1143-1154

Abstract: Balanced (exponential) growth cannot be generalized to a concept which would not require knife-edge conditions to be imposed on dynamic models. Already the assumption that a solution to a dynamical system (i.e. time path of an economy) satisfies a given functional regularity (e.g. quasi-arithmetic, logistic, etc.) imposes at least one knife-edge assumption on the considered model. Furthermore, it is always possible to find divergent and qualitative changes in dynamic behavior of the model - strong enough to invalidate its long-run predictions - if a certain parameter is infinitesimally manipulated.

Keywords: Knife-edge; condition; Balanced; growth; Regular; growth; Bifurcation; Growth; model; Long-run; dynamics (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (7)

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Related works:
Working Paper: Knife-Edge Conditions in the Modeling of Long-Run Growth Regularities (2009)
Working Paper: Knife-edge conditions in the modeling of long-run growth regularities (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jmacro:v:32:y:2010:i:4:p:1143-1154

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