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Equilibrium existence in a discrete-time endogenous growth model with physical and human capital

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  • Luis Alcala

Abstract

This paper studies a discrete-time version of the Lucas-Uzawa endogenous growth model with physical and human capital. Equilibrium existence is proved applying tools of dynamic programming with unbounded returns. The proofs rely on properties of homogeneous functions and also apply well-known inequalities in real analysis, seldom used in the literature, which significantly simplifies the task of verifying certain assumptions that are rather technical in nature.

Suggested Citation

  • Luis Alcala, 2023. "Equilibrium existence in a discrete-time endogenous growth model with physical and human capital," Papers 2401.00342, arXiv.org.
    • Handle: RePEc:arx:papers:2401.00342
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    References listed on IDEAS

    as
    1. Le Van, Cuong & Vailakis, Yiannis, 2005. "Recursive utility and optimal growth with bounded or unbounded returns," Journal of Economic Theory, Elsevier, vol. 123(2), pages 187-209, August.
    2. Alvarez, Fernando & Stokey, Nancy L., 1998. "Dynamic Programming with Homogeneous Functions," Journal of Economic Theory, Elsevier, vol. 82(1), pages 167-189, September.
    3. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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    More about this item

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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