Complex dynamics in a Pasinetti-Solow model of growth and distribution
Pasquale Commendatore ()
Macroeconomics from University Library of Munich, Germany
In this paper, we study some of the properties of a discrete-time version of the two-class model of growth and distribution proposed by Pasinetti (1962) and Samuelson and Modigliani (1966) with a concave production function of the CES type. Two distinct groups of agents, workers and capitalists, exist. Following Chiang (1973), we assume that the first group saves out of wages and profits by applying to these income sources propensities to save which are not necessarily equal. Capitalists’ saving originates only from capital income. The model is two-dimensional involving distributive processes that occur not only between factor shares but also between the two groups in the economy. We explore through simulations the large variety of dynamic behaviours that emerge from this formulation.
Keywords: Growth; Income distribution; Complex dynamics; Chaos (search for similar items in EconPapers)
JEL-codes: E25 E32 O40 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac
Note: Type of Document - doc; pages: 28
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Working Paper: Complex dynamics in a Pasinetti-Solow model of Growth and distribution (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpma:0511006
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