Dynamic Structure, Exogeneity—Time Paths, Phase Portraits for Two-Factor and Multi-Factor Macro Growth Models
摘要
This chapter studies autonomous dynamic systems that allow for the existence of economic growth per capita without dynamically generating explosive solutions. The implications of any degree of homogeneity, including increasing returns to scale in production, must be carefully examined in two and higher dimensions. Moreover, the necessity of introducing some exogenous state variables will be demonstrated within homogeneous dynamic systems. We solve and demonstrate the dynamic implications of scale and the substitution elasticities in various basic (two-factor) and augmented (multi-factor) macro growth models. Our general propositions and the specific results will be related to the seminal macro growth model contributions in economics.