IDEAS home Printed from https://ideas.repec.org/a/bla/jecrev/v52y2001i3p328-338.html
   My bibliography  Save this article

Stable Optimal Cycles With Small Discounting in a Two‐sector Discrete‐time Model: A Non‐bifurcation Approach

Author

Listed:
  • Harutaka Takahashi

Abstract

This paper presents a standard two‐sector optimal growth model with general neoclassical production functions: strictly quasi‐concave, twice continuously differentiable homogeneous of degree 1 functions. Instead of applying the standard local bifurcation theory, I exploit two well established properties in Turnpike Theory—“simple dynamics” and the Neighbourhood Turnpike— and, combining both results, I demonstrate that there exists an interval of the discount factor near 1 such that a corresponding optimal steady state is totally unstable and an optimal path converges asymptotically to a two‐period cycle for a chosen discount factor in it. JEL Classification Numbers: O21, O41.

Suggested Citation

  • Harutaka Takahashi, 2001. "Stable Optimal Cycles With Small Discounting in a Two‐sector Discrete‐time Model: A Non‐bifurcation Approach," The Japanese Economic Review, Japanese Economic Association, vol. 52(3), pages 328-338, September.
    • Handle: RePEc:bla:jecrev:v:52:y:2001:i:3:p:328-338
    DOI: 10.1111/1468-5876.00198
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1468-5876.00198
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1468-5876.00198?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    JEL classification:

    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jecrev:v:52:y:2001:i:3:p:328-338. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/jeaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.