The hopf bifurcation and the existence and stability of closed orbits in multisector models of optimal economic growth

Jess Benhabib, Kazuo Nishimura

    Research output: Contribution to journalArticlepeer-review

    Abstract

    It is shown that under very general circumstances, the standard optimal growth model with two or more capital goods can give rise to optimal trajectories that are limit cycles. An example with a nonjoint production Cobb-Douglass technology giving rise to closed cycles around a unique steady state is constructed. The stability of orbits is also studied.

    Original languageEnglish (US)
    Pages (from-to)421-444
    Number of pages24
    JournalJournal of Economic Theory
    Volume21
    Issue number3
    DOIs
    StatePublished - Dec 1979

    ASJC Scopus subject areas

    • Economics and Econometrics

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