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Local and Global Dynamics in a Discrete Time Growth Model with Nonconcave Production Function

Author

Listed:
  • Serena Brianzoni

    (Università Politecnica delle Marche)

  • Cristiana Mammana

    (Università di Macerata)

  • Elisabetta Michetti

    (Università di Macerata)

Abstract

We study the dynamics shown by the discrete time neoclassical one-sector growth model with differential savings as in Bohm and Kaas (2000) while assuming a nonconcave production function in the form given by Capasso et. al. (2010). We prove that complex features are exhibited related both to the structure of the coexixting attractors and to their basins. We also show that complexity emerges if the elasticity of substitution between production factors is low enough and shareholders save more than workers, confirming the results obtained while considering concave production functions (see, for instance, Brianzoni et al. (2007) (2009) and (2011)).

Suggested Citation

  • Serena Brianzoni & Cristiana Mammana & Elisabetta Michetti, 2012. "Local and Global Dynamics in a Discrete Time Growth Model with Nonconcave Production Function," Working Papers 70-2012, Macerata University, Department of Finance and Economic Sciences, revised Sep 2015.
    • Handle: RePEc:mcr:wpdief:wpaper00070
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    References listed on IDEAS

    as
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    3. Grassetti, Francesca & Mammana, Cristiana & Michetti, Elisabetta, 2018. "Substitutability between production factors and growth. An analysis using VES production functions," Chaos, Solitons & Fractals, Elsevier, vol. 113(C), pages 53-62.
    4. Francesca Grassetti & Cristiana Mammana & Elisabetta Michetti, 2018. "Poverty trap, boom and bust periods and growth. A nonlinear model for non-developed and developing countries," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 41(2), pages 145-162, November.

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