1,721,007 research outputs found
Global Attractors of Non-autonomous Difference Equations
Full text linkThe article is devoted to the study of global attractors of quasi-linear non-autonomous difference equations, in particular we give the conditions for the existence of a compact global attractor. The obtained results are applied to the study of a triangular economic growth model recently developed by Brianzoni S., Mammana C. and Michetti E.Global attractors,Solow growth model,CGE,quasi-linear non-autonomous,difference equations,Endogenous population growth
A dynamical model for real economy and finance
No full textWe have studied a discrete time dynamical model with four variables and delays, describing the interaction between a three-sector real economy and a financial market with four assets. Investors and financial intermediaries have heterogeneous beliefs. We show that complexity related to the evolution of state variables emerges and we investigate interdependence among economic fluctuations and assets volatility. By means of stability analysis we have found that real economy influences the existence of equilibrium prices in financial markets and that risky asset prices as well as capital per capita reach zero only when the elasticity of substitution between capital and labour is low enough. Bifurcation analysis shows that an increase of bond return would decrease the price of all the assets, conversely when the bond return decreases fluctuations and complex dynamics may arise. Due to the complexity of the model, computational tools are used to investigate long run dynamics, thus showing that for sufficiently high values of the interest rate bifurcations with repetitive structure emerge. In addition, we show how the total number of shares in each sector influences its price volatility. Finally, when fluctuations appear, economic policy intended to increase employment could stabilise the model only in sufficiently developed economies
A dynamical model for real economy and finance
No full textWe have studied a discrete time dynamical model with four variables and delays, describing the interaction between a three-sector real economy and a financial market with four assets. Investors and financial intermediaries have heterogeneous beliefs. We show that complexity related to the evolution of state variables emerges and we investigate interdependence among economic fluctuations and assets volatility. By means of stability analysis we have found that real economy influences the existence of equilibrium prices in financial markets and that risky asset prices as well as capital per capita reach zero only when the elasticity of substitution between capital and labour is low enough. Bifurcation analysis shows that an increase of bond return would decrease the price of all the assets, conversely when the bond return decreases fluctuations and complex dynamics may arise. Due to the complexity of the model, computational tools are used to investigate long run dynamics, thus showing that for sufficiently high values of the interest rate bifurcations with repetitive structure emerge. In addition, we show how the total number of shares in each sector influences its price volatility. Finally, when fluctuations appear, economic policy intended to increase employment could stabilise the model only in sufficiently developed economies
Variable Elasticity of Substitution in the Diamond Model: Dynamics and Comparisons
Full text linkWe study the dynamics shown by the discrete time Diamond overlapping generations model with the VES production function in the form given by Revankar[10] and compare our results with those obtained by Brianzoni et al.[2] in the Solow model.
We prove that, as in Brianzoni et al.[2], unbounded endogenous growth can emerge if the elasticity of substitution is greater than one; moreover, differently from Brianzoni et al.[2], the Diamond model can admit two positive steady states. We also prove that complex dynamics occur if the elasticity of substitution between production factors is less than one, confirming the results obtained by Brianzoni et al.[2]. Numerical simulations support the analysis
Economic development with deadly communicable diseases and public prevention
Full text linkInfectious diseases have been a major determinant of human mortality in history and the key regulator of population size, including the first epoch of the Industrial Revolution (until the 1950s) in Western countries and still now in developing countries, especially in Sub-Saharan Africa. In recent times, a new vein of economic research dealing with the interplay between communicable diseases and economic development has grown. However, pioneering previous research has analysed this issue in a framework where prevention decisions were the outcome of private individual rational choices. This assumption neither seems to hold for least-developed countries, primarily due to a lack of resources, nor for developed countries, where prevention policies are mostly planned by the public authority through its (public) health system, as also well documented by the current COVID-19 crisis. Our aim in this article is twofold. First, we pinpoint the properties of Chakraborty et al.'s (2010, 2016) basic epidemiological equation to fully enlighten its usability in economic-epidemiology modelling. Second, we apply this framework to analyse prevention activities against a range of infectious diseases by endogenous public (rather than private) health expenditures. Our results identify the relationships governing the interplay between—on the one hand—typical epidemiological phenomena, namely invasion (i.e., the tendency of infection to establish in a population) versus endemicity (i.e., the tendency of infection to persist in the long term) and—on the other hand—economic variables, such as capital accumulation, GDP, and taxation. This is done by identifying threshold quantities, depending on both epidemiological and economic parameters, and by bifurcation analysis showing the effects that public intervention can have on previously uncontrolled infectious diseases. Both direct and indirect, that is, partial and general equilibrium, effects of control interventions are identified
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