
Accession Number : AD0720343
Title : On Equilibrium Growth of Dynamic Economic Models.
Descriptive Note : Research rept.,
Corporate Author : CALIFORNIA UNIV BERKELEY OPERATIONS RESEARCH CENTER
Personal Author(s) : Gale,David
Report Date : FEB 1971
Pagination or Media Count : 32
Abstract : The paper studies equilibrium growth of economic models. In the first part a rather general open ended multisector model is introduced and its possible steady states are characterized. These are shown to belong to one of two types. They are either golden rule equilibria in which wages equal consumption or they are 'wealthcaptial' equilibria in which the aggregate stocks of capital and private wealth are equal. In the second part of the paper a simple two sector model is analyzed, and it is shown thatat if initially the model starts out with capital in excess of private wealth then it will tend to move away from the wealthcapital and toward the golden rule equilibrium. The present treatment contrasts with much of recent growth analysis in that it does not assume that wealth and capital are identical. (Author)
Descriptors : (*ECONOMICS, MATHEMATICAL MODELS), OPERATIONS RESEARCH, GROWTH(PHYSIOLOGY), EQUILIBRIUM(PHYSIOLOGY), SALARIES, CONSUMPTION, MATHEMATICAL ANALYSIS
Subject Categories : Economics and Cost Analysis
Distribution Statement : APPROVED FOR PUBLIC RELEASE