Dynamic Structure, Exogeneity, Phase Portraits, Growth Paths, and Scale and Substitution Elasticities

31 Pages Posted: 5 Feb 2005

See all articles by Bjarne S. Jensen

Bjarne S. Jensen

Copenhagen Business School

Preben K. Alsholm

Technical University of Denmark

Mogens E. Larsen

University of Copenhagen - Department of Mathematics

Jens Martin Jensen

Vinci Computers

Abstract

The paper studies autonomous dynamic systems that allow for the existence of economic growth per capita without dynamically generating explosive solutions. The implications of any degree of homogeneity, including increasing returns to scale in production, must be carefully examined in two and higher dimensions. The necessity of introducing some exogenous state variables is demonstrated within homogeneous dynamic systems. The authors solve and demonstrate the dynamic implications of scale and the substitution elasticities in various basic (two-factor) and augmented (multifactor) aggregate growth models.

Suggested Citation

Jensen, Bjarne S. and Alsholm, Preben K. and Larsen, Mogens E. and Jensen, Jens Martin, Dynamic Structure, Exogeneity, Phase Portraits, Growth Paths, and Scale and Substitution Elasticities. Available at SSRN: https://ssrn.com/abstract=661593

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/

Preben K. Alsholm

Technical University of Denmark ( email )

Anker Engelunds Vej 1
Building 101A
Lyngby, 2800
Denmark

Mogens E. Larsen

University of Copenhagen - Department of Mathematics ( email )

Nørregade 10
Copenhagen, København DK-1165
Denmark

Jens Martin Jensen

Vinci Computers ( email )

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