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Nash Equilibria in a Differential Game of Economic Growth

Author

Listed:
  • C. González-Alcón

    (University of La Laguna)

  • J. Sicilia

    (University of La Laguna)

  • J. A. Álvarez

    (University of La Laguna)

Abstract

The present work studies a dynamic game of economic growth with two phases or periods. In the first phase, a political process exists where an institutional framework is fixed, that is, limits to the workers share in the national income, minimum limits of consumption by capitalists, and discretionality in investment are specified. This framework conditions the actions of the players (capitalists and workers). In the second phase, the Nash equilibria of the game are calculated. Lastly, the sensitivity of the results with respect to the institutional parameters is analyzed for a given scenario.

Suggested Citation

  • C. González-Alcón & J. Sicilia & J. A. Álvarez, 1999. "Nash Equilibria in a Differential Game of Economic Growth," Journal of Optimization Theory and Applications, Springer, vol. 103(2), pages 337-357, November.
    • Handle: RePEc:spr:joptap:v:103:y:1999:i:2:d:10.1023_a:1021752719214
    DOI: 10.1023/A:1021752719214
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    References listed on IDEAS

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    1. Hoel, Michael, 1978. "Distribution and Growth as a Differential Game between Workers and Capitalists," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 335-350, June.
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    4. North, Douglass C., 1989. "Institutions and economic growth: An historical introduction," World Development, Elsevier, vol. 17(9), pages 1319-1332, September.
    5. Kaitala, Veijo & Pohjola, Matti, 1990. "Economic Development and Agreeable Redistribution in Capitalism: Efficient Game Equilibria in a Two-Class Neoclassical Growth Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(2), pages 421-438, May.
    6. Haurie, Alain & Pohjola, Matti, 1987. "Efficient equilibria in a differential game of capitalism," Journal of Economic Dynamics and Control, Elsevier, vol. 11(1), pages 65-78, March.
    7. Lancaster, Kelvin, 1973. "The Dynamic Inefficiency of Capitalism," Journal of Political Economy, University of Chicago Press, vol. 81(5), pages 1092-1109, Sept.-Oct.
    8. Rebelo, Sergio, 1991. "Long-Run Policy Analysis and Long-Run Growth," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 500-521, June.
    9. Pohjola, Matti, 1984. "Threats and bargaining in capitalism a differential game view," Journal of Economic Dynamics and Control, Elsevier, vol. 8(3), pages 291-302, December.
    10. Basar, Tamer & Haurie, Alain & Ricci, Gianni, 1985. "On the dominance of capitalists leadership in a Feedback-Stackelberg solution of a differential game model of capitalism," Journal of Economic Dynamics and Control, Elsevier, vol. 9(1), pages 101-125, September.
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    Cited by:

    1. Edgar J. Sanchez Carrera, 2012. "On feedback nash equilibrium and cooperation in the neoclassical growth model," EconoQuantum, Revista de Economia y Finanzas, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 9(2), pages 29-43, Julio-Dic.
    2. A. M. Croicu & M. Y. Hussaini, 2008. "Multiobjective Stochastic Control in Fluid Dynamics via Game Theory Approach: Application to the Periodic Burgers Equation," Journal of Optimization Theory and Applications, Springer, vol. 139(3), pages 501-514, December.

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