Knife-Edge Conditions in the Modeling of Long-Run Growth Regularities

Jakub Growiec

No 68, NBP Working Papers from Narodowy Bank Polski

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)
JEL-codes: C62 O40 O41 (search for similar items in EconPapers)
Pages: 34
Date: 2009
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Knife-edge conditions in the modeling of long-run growth regularities (2010)
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:nbp:nbpmis:68

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