Delay two-sector economic growth model with a Cobb–Douglas production function

Akio Matsumoto () and Ferenc Szidarovszky ()
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Akio Matsumoto: Chuo University
Ferenc Szidarovszky: Corvinus University

Decisions in Economics and Finance, 2021, vol. 44, issue 1, No 18, 358 pages

Abstract: Abstract This study demonstrates the possibility of cyclic capital accumulation in the case in which there are delays in capital implementation and estimation of capital depreciation. For this purpose, a two-sector growth model with Cobb–Douglas production function is built. It is shown that the stability of the balanced growth may change as lengths of delay change. It is also shown that on the stability switching curve the stability is lost and bifurcates to a limit cycle via a Hopf bifurcation.

Keywords: Production delay; Depreciation delay; Two-sector growth model; Stability switching curve; Hopf bifurcation; Stability index (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s10203-021-00321-2

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