A Three-period Samuelson-Diamond Growth Model

Publikation: Working paperForskning

Resumé

 
OriginalsprogEngelsk
Udgivelses stedKøbenhavn
Antal sider10
StatusUdgivet - 2005

Emneord

  • Vækstteori

Citer dette

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title = "A Three-period Samuelson-Diamond Growth Model",
abstract = "Samuelson (1958) analyses a three-period model, whereas Diamod (1965) considers a two-period model. This difference poses the question whether the insights derived by analysing the simple two-period model carry over in the more complicated three-period case. They do. The Samuelson model (no productive capital) has only one positive solution (r = n); however, this root is unstable. The Diamond model (no nonproductive abode of purchasing power) has also only one positive solution; the root is stable but inefficient. In a model with both productive capital and a non-productive abode of purchasing power, the inefficient Diamond solution becomes unstable and the socially optimal solution becomes stable.",
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author = "Niels Blomgren-Hansen",
year = "2005",
language = "English",
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A Three-period Samuelson-Diamond Growth Model. / Blomgren-Hansen, Niels.

København, 2005.

Publikation: Working paperForskning

TY - UNPB

T1 - A Three-period Samuelson-Diamond Growth Model

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PY - 2005

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N2 - Samuelson (1958) analyses a three-period model, whereas Diamod (1965) considers a two-period model. This difference poses the question whether the insights derived by analysing the simple two-period model carry over in the more complicated three-period case. They do. The Samuelson model (no productive capital) has only one positive solution (r = n); however, this root is unstable. The Diamond model (no nonproductive abode of purchasing power) has also only one positive solution; the root is stable but inefficient. In a model with both productive capital and a non-productive abode of purchasing power, the inefficient Diamond solution becomes unstable and the socially optimal solution becomes stable.

AB - Samuelson (1958) analyses a three-period model, whereas Diamod (1965) considers a two-period model. This difference poses the question whether the insights derived by analysing the simple two-period model carry over in the more complicated three-period case. They do. The Samuelson model (no productive capital) has only one positive solution (r = n); however, this root is unstable. The Diamond model (no nonproductive abode of purchasing power) has also only one positive solution; the root is stable but inefficient. In a model with both productive capital and a non-productive abode of purchasing power, the inefficient Diamond solution becomes unstable and the socially optimal solution becomes stable.

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M3 - Working paper

BT - A Three-period Samuelson-Diamond Growth Model

CY - København

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