Walrasian General Equilibrium Allocations and Dynamics in Two-Sector Growth Models

Posted: 1 Aug 2003

Abstract

This paper analyzes and solves miniature Walrasian general equilibrium systems of momentary and moving equilibria. The Walrasian framework encompasses the fundamental neoclassical and classical two-sector growth models; the families of solutions of steady-state and persistent growth per capita in various competitive two-sector economies are parametrically characterized. Moreover, the endogenous behavior of relative prices and the sectoral allocation of primary factors are analyzed in detail. The technology parameters of the capital good industry are decisive for obtaining long-run per capita growth in closed (global) economies. A review of the literature complements the theorems on the general equilibrium allocations, dynamic systems, and the time paths of Walrasian two-sector economies.

Suggested Citation

Jensen, Bjarne S., Walrasian General Equilibrium Allocations and Dynamics in Two-Sector Growth Models. Available at SSRN: https://ssrn.com/abstract=388502

Bjarne S. Jensen (Contact Author)

Copenhagen Business School ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark
+45-3815 2583 (Phone)
+45-3815 2576 (Fax)

HOME PAGE: http://www.cbs.dk/staff/bjarneslothjensen/

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
526
PlumX Metrics