Global attractor in Solow growth model with differential savings and endogenic labor force growth
<span style="font-size: 9.5pt"><span style="font-size: 9.5pt">In this paper we study the dynamics of a discrete triangular system T in capital per capita and population growth representing the neoclassical growth model with CES production</span><span style="font-size: 9.5pt">function and differential savings, under the assumption that the labor force growth rate is</span><span style="font-size: 9.5pt">endogenous and described by a generic iterative scheme having a unique positive globally</span><span style="font-size: 9.5pt">stable equilibrium. </span><span style="font-size: 9.5pt">The study herewith presented aims at confirming the existence of a</span><span style="font-size: 9.5pt">compact global attractor for system T along the invariant line. </span><span style="font-size: 9.5pt">Consequently asymptotic dynamics of growth models with constant population growth rate can be related</span><span style="font-size: 9.5pt">to those with non-constant population growth if the steady state rate is globally stable.</span><span style="font-size: 9.5pt">Furthermore we prove that the system exhibits cycles or even chaotic dynamics patterns</span><span style="font-size: 9.5pt">if shareholders save more than workers, when the elasticity of substitution between production factors drops below one (so that capital income declines). </span><span style="font-size: 9.5pt">The analytical results</span><div><span style="font-size: 9.5pt; line-height: 115%">are supplemented by numerical simulations.</span></span>
