Template-type: ReDIF-Paper 1.0
Author-Name: Privileggi, Fabio
Author-Email: fabio.privileggi@unito.it
Author-Workplace-Name: University of Turin
Author-Workplace-Homepage: http://www.est.unito.it/
Title:Takeoff vs. Stagnation in Endogenous Recombinant Growth Models
Abstract: This paper concludes the study of transition paths in the continuous-time recombinant endogenous growth model by providing numerical method to estimate the 
threshold initial value of capital (a Skiba-type point) above which the economy takes off toward sustained growth in the long run, while it is doomed to stagnation 
otherwise. The model is based on the setting first introduced by Tsur and Zemel and then further specified by Privileggi, in which knowledge evolves according to 
the Weitzman recombinant process.
We pursue a direct approach based on the comparison of welfar e estimations along optimal consumption trajectories either diverging to sustained growth or converging 
to a steady state. To this purpose, we develop and test three algorithms capable of numerically simulating the initial Skiba-value of capital, each corresponding 
to initial stock of knowledge values belonging to three different ranges, thus covering all possible scenarios.
Length: 41 pages
Creation-Date: 2013-09
File-http://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2013dip/wp_38_2013.pdf
File-Format: Application/PDF
Handle: RePEc:uto:dipeco:201338