Saving Rates, Trade, Technology, and Stochastic Dynamics | Zendy

Jensen Bjarne S. | Zendy; Richter Martin | Zendy; Wang Chunyan | Zendy; Alsholm Preben K. | Zendy

AI Assistant Blog Pricing

Home ZAIA Blog

Premium

Saving Rates, Trade, Technology, and Stochastic Dynamics

Author(s) -

Jensen Bjarne S.,

Richter Martin,

Wang Chunyan,

Alsholm Preben K.

Publication year - 2001

Publication title -

review of development economics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.531

H-Index - 50

eISSN - 1467-9361

pISSN - 1363-6669

DOI - 10.1111/1467-9361.00117

Subject(s) - economics , endowment , small open economy , econometrics , investment (military) , factor endowment , sample (material) , endogenous growth theory , microeconomics , macroeconomics , international trade , comparative advantage , monetary policy , human capital , philosophy , chemistry , epistemology , chromatography , politics , political science , law , economic growth

This paper develops a framework for analyzing the stochastic dynamics of small growing trading economies with CES sector technologies. The open neoclassical two‐sector growth model with a diffusion process (uncertainty) for the aggregate saving/investment ratio is demonstrated with sample paths and long‐run probability distributions of the overall factor endowment ratio. Stochastic endogenous growth and cycles require a combination of fundamental growth parameter values: saving rates, terms of trade, and sectorial substitution elasticities.

This content is not available in your region!

Continue researching here.

Having issues? You can contact us here

Accelerating Research