Economic growth and multiple equilibria: A critical note

• Type: Article in International Scientific Journal
• Date: 2014

Authors

Gaspar, JM (Author) Other; Vasconcelos, pb (Author) FEP; Afonso, Óscar (Author) FEP

Journal

Title: Economic Modelling

Vol. 36

Pages: 157-160

ISSN: 0264-9993

Publisher: Elsevier

Indexing

ISI Web of Knowledge - 8 Citations

ISI Web of Science

Scopus - 12 Citations

Scientific classification

FOS: Social sciences > Economics and Business

Other information

Authenticus ID: P-008-F74

DOI: 10.1016/j.econmod.2013.09.037

Abstract (EN): Recent literature on economic growth points towards the possibility of the existence of multiple equilibria, under certain conditions. In this paper we use a growth model with a public health infrastructure to analyze, in detail, its local dynamics. The discussion of the existence of equilibria in the model reveals that some candidates for equilibria turn out to be non-relevant and are therefore ruled out. Indeed, multiple equilibria may only arise under restrictive parameter values, meaning that the so called "growth miracles" in some literature may be less likely to occur. Numerical computations illustrate that each relevant equilibrium exhibits local saddle-path stability.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 4