Knife-edge conditions in the modeling of long-run growth regularities

Jakub Growiec

MPRA Paper from University Library of Munich, Germany

Abstract: Balanced (exponential) growth cannot be generalized to a concept which would not require knife-edge conditions to be imposed on dynamic models. Already the assumption that a solution to a dynamical system (i.e. time path of an economy) satisfies a given functional regularity (e.g. quasi-arithmetic, logistic, etc.) imposes at least one knife-edge assumption on the considered model. Furthermore, it is always possible to find divergent and qualitative changes in dynamic behavior of the model – strong enough to invalidate its long-run predictions – if a certain parameter is infinitesimally manipulated. In this sense, dynamics of all growth models are fragile and "unstable".

Keywords: knife-edge condition; balanced growth; regular growth; bifurcation; growth model; long run; long-run dynamics (search for similar items in EconPapers)
JEL-codes: C62 O40 O41 (search for similar items in EconPapers)
Date: 2008-07-31
New Economics Papers: this item is included in nep-dge
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Knife-edge conditions in the modeling of long-run growth regularities (2010)
Working Paper: Knife-Edge Conditions in the Modeling of Long-Run Growth Regularities (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:9956

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