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A Study on Dynamic General Equilibrium under the Classical Growth Framework

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  • Li, Wu

Abstract

The equilibrium analyses under the classical growth framework mainly concern production processes so far and the utility-maximization of consumers is not considered sufficiently. Treating a consumer as a producer of labor or land-use right etc. with a utility parameter, this paper presents equilibrium formulas taking account of the utility-maximization of consumers, which may facilitate the analysis of dynamic general equilibrium involving both profit-maximizing firms and utility-maximizing consumers under the classical growth framework. For concreteness, some numerical examples with Cobb-Douglas production and utility functions are utilized to illustrate the method of the equilibrium analysis involving utility-maximizing consumers.

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  • Li, Wu, 2010. "A Study on Dynamic General Equilibrium under the Classical Growth Framework," MPRA Paper 25540, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:25540
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    References listed on IDEAS

    as
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    7. Heinz Kurz & Neri Salvadori, 2000. "'Classical' Roots of Input-Output Analysis: A Short Account of its Long Prehistory," Economic Systems Research, Taylor & Francis Journals, vol. 12(2), pages 153-179.
    8. Kurz, Heinz D, 1978. "Rent Theory in a Multisectoral Model," Oxford Economic Papers, Oxford University Press, vol. 30(1), pages 16-37, March.
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    Cited by:

    1. LI, Wu, 2012. "A Study on the Dynamics of Interest Rate," MPRA Paper 42840, University Library of Munich, Germany.

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    More about this item

    Keywords

    dynamic general equilibrium; utility; Sraffian system; von Neumann growth model; land rent;
    All these keywords.

    JEL classification:

    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models

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