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Robust cyclical growth
Author(s) -
Mukherji Anjan
Publication year - 2005
Publication title -
international journal of economic theory
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 11
eISSN - 1742-7363
pISSN - 1742-7355
DOI - 10.1111/j.1742-7363.2005.00015.x
Subject(s) - economics , robustness (evolution) , growth model , econometrics , context (archaeology) , stability (learning theory) , keynesian economics , computer science , biology , paleontology , biochemistry , machine learning , gene
The stability of cyclical growth within the context of a model in “Growing through cycles” in Econometrica by Matsuyama (1999) is examined. It is shown that but for an extreme situation, the two‐period cycles (two‐cycles) are unique and a range of parameter values that imply the stability of such cyclical growth is derived. The growth enhancing property of two‐cycles are shown to be retained by any cycle; the results of simulation exercises carried out are reported to show that for a very wide range of parameter values, such cyclical growth paths are stable and, therefore, robustness of the conclusions is established.