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Patterns of Non-exponential Growth of Macroeconomic Models: Two-parameter Poisson-Dirichlet Models

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Masanao Aoki (Department of Economics, UCLA)

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Abstract

This paper discusses non-exponential growth patterns of macroeconomic models. More specifically, the paper discusses asymptotic growth patterns of the numbers of clusters and of components of partition vectors, that is, the number of clusters of specific sizes, of one-andtwo-parameter Poisson-Dirichlet models as the model sizes grow towards infinity. As the model sizes become large, the coefficients of variaation of the cluster sizes and components of the partition vector tend to zero in one-parameter Poisson-Dirichlet model, but they remain positive in the two-parameter version. Furthermore, the two-parameter version of the model exhibits power-law behavior, while the one-parameter versiondoes not. The growth behavior of the two-parameter models is shown to be expressed in terms of generalized Mittag-Leffler distributions. The paper ends with preliminary discussion of the effects of demand pattern management policies on growth patterns of models that endogenize the parameters of the two-parameter Poisson-Dirichlet model.

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Paper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number CIRJE-F-449.

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Length: 15pages
Date of creation: Nov 2006
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Handle: RePEc:tky:fseres:2006cf449

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