Template-type: ReDIF-Paper 1.0
Author-Name: Davide La Torre
Author-Email: davide.latorre@unimi.it
Author-Email: davide.latorre@kustar.ac.ae
Author-Name:  Simone, Marsiglio 
Author-Email: simonem@uow.edu.au
Author-Name:  Mendivil, Franklin
Author-Email: franklin.mendivil@acadiau.ca
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: Self-Similar Measures in Multi-Sector Endogenous Growth Models.
Abstract: We analyze two types of stochastic discrete time multi-sector endogenous growth models, namely a basic 
Lucas-Uzawa (1988) model and an extended three-sector version as in La Torre and Marsiglio (2010). 
As in the case of sustained growth the optimal dynamics of the state variables are not stationary, we focus on the 
dynamics of the capital ratio variables, and we show that, through appropriate log-transform ations, they can be 
converted into affine iterated function systems converging to an invariant distribution supported on some fractal 
set. This proves that also the steady state of endogenous growth models i.e., the stochastic balanced growth path 
equilibrium—might have a fractal nature. We also provide some sufficient conditions under which the associated 
self-similar measures turn out to be either singular or absolutely continuous (for the three-sector model we only
consider the singularity).
Length: 30 pages
Creation-Date: 2015-02
File-URL: http://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2015dip/wp_9_2015.pdf
File-Format: Application/PDF
Handle: RePEc:uto:dipeco:201509