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2005-06-13Diskussionspapier DOI: 10.18452/3899
Notes on an Endogenous Growth Model with two Capital Stocks II
dc.contributor.authorBethmann, Dirk
dc.date.accessioned2017-06-15T22:56:28Z
dc.date.available2017-06-15T22:56:28Z
dc.date.created2005-09-01
dc.date.issued2005-06-13
dc.identifier.issn1860-5664
dc.identifier.urihttp://edoc.hu-berlin.de/18452/4551
dc.description.abstractThis paper extends the class of stochastic AK growth models with a closed-form solution to the case where there are two capital goods in the model. To be precise, we consider the Uzawa-Lucas model of endogenous growth with human and physical capital. The extension holds, even if an external effect in the use of human capital in goods production occurs. Using the “guess and verify” method, we determine the value function of the social planner in the centralized economy and the value function of the representative agent in the decentralized case. We show that the introduction of income taxes on wages and of a subsidy on physical capital earnings is able to help the decentralized economy in reaching the social optimum, while keeping the policy maker’s budget balanced. Then the time series implications of the model’s solution are derived. In Appendix to the paper the uniqueness of the value functions is proved by using an alternative method.eng
dc.language.isoeng
dc.publisherHumboldt-Universität zu Berlin, Wirtschaftswissenschaftliche Fakultät
dc.rights.urihttp://rightsstatements.org/vocab/InC/1.0/
dc.subjectclosed-form solutioneng
dc.subjectvalue functioneng
dc.subjectsaddle path stabilityeng
dc.subjectendogenous growtheng
dc.subject.ddc330 Wirtschaft
dc.titleNotes on an Endogenous Growth Model with two Capital Stocks II
dc.typeworkingPaper
dc.identifier.urnurn:nbn:de:kobv:11-10045536
dc.identifier.doihttp://dx.doi.org/10.18452/3899
local.edoc.pages25
local.edoc.type-nameDiskussionspapier
local.edoc.container-typeseries
local.edoc.container-type-nameSchriftenreihe
local.edoc.container-year2005
dc.title.subtitleThe Stochastic Case
dc.identifier.zdb2195055-6
bua.series.nameSonderforschungsbereich 649: Ökonomisches Risiko
bua.series.issuenumber2005,33

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