The closed-form solution for a family of four-dimension nonlinear MHDS
In this article we propose a method for solving a general class of four-dimension nonlinear modified Hamiltonian dynamic systems in closed form. This method may be used to study several intertemporal optimization problems sharing a common structure, which involves unbounded technological constraints as well as multiple controls and state variables. The method is developed by solving the first-order conditions associated with the planner's problem corresponding to the Lucas [1988. On the mechanics of economic development. Journal of Monetary Economics 22, 3-42] two-sector model of endogenous growth, and allows for explicitly showing the transitional dynamics of the model. Despite the externality, the socially optimal short-run trajectory is unique.
Year of publication: |
2008
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Authors: | Ruiz-Tamarit, José Ramón |
Published in: |
Journal of Economic Dynamics and Control. - Elsevier, ISSN 0165-1889. - Vol. 32.2008, 3, p. 1000-1014
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Publisher: |
Elsevier |
Saved in:
Online Resource
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