Transshipments and inventories in the Takayama-Judge model

This paper shows that the Takayama-Judge model to solve interregional and intertemporal market equilibrium conditions faces difficulties when transshipments take place and that the difficulties relating to inventories, pointed out by Guise and others in this Journal, are special cases relating to transshipments. These difficulties can be overcome, simply by relaxing the non-negativity condition imposed on x_ii(t) terms in the material balance conditions.     

Interior Optimal Chaos with Arbitrarily Low Discount Rates

In this study, we demonstrate, for an arbitrarily small discount rate, the existence of a topologically chaotic policy function that lies in the interior of the technology set in a two-sector model with smooth production and utility functions. For this purpose, we adopt CES production functions and a utility function with a constant elasticity of intertemporal substitution. The two-sector model with those functions always has a policy function lying in the interior of the technology set (interior policy function). The existence of a scramble set of a policy function may be proved even in the case in which the discount rate is arbitrarily small.
JEL Classification Number: 041.     

A Characterization of the Dynamical System in a Two-sector Overlapping-generations Model: The Case of Unbounded Growth

This paper characterizes perfect-foresight equilibria in a two-sector overlapping-generations economy for the case of unbounded growth. The analysis demonstrates that gross substitutability in consumption is not sufficient to ensure the determinacy of equilibrium. Unlike Boldrin and Rustichini (1994), indeterminacy of equilibria can arise within the framework of an overlapping-generations model with convex technology. The finite time horizon of agents is the source of such indeterminacy.
JEL Classification Number: 041.     

Homoclinic bifurcation and global indeterminacy of equilibrium in a two-sector endogenous growth model

This paper considers an endogenous growth model that belongs to the same family as the Lucas model. In the Lucas model an external effect appears in the physical-goods sector, whereas in our model, it appears in the educational sector. In our model, this external effect yields multiple balanced growth paths. Our model undergoes a homoclinic bifurcation and exhibits global indeterminacy of equilibrium.     

Regional development and non-material public infrastructure

The aim of this paper is to investigate the conditions under which public investment can be allocated to the infrastructure in material and non-material capital so as to have a positive effect on regional development and interregional inequality. To investigate this issue, the paper focuses on the externalities created by investing in infrastructure for the transfer of information, know-how or technical knowledge.     

Spatial and temporal price and allocation modeling: Some extensions

This paper delineated the conditions under which linear complimentarity programming is applicable in the area of spatial and temporal price and allocation modeling. Two examples are offered which are not solvable using the previous methodology available.     

Asset bubbles,labour market frictions and R&D‐based growth

Employing an overlapping generations model of R&D‐based growth with labour market frictions, this paper examines how employment changes induced by labour market frictions influence asset bubbles and long‐run economic growth. Asset bubbles can (cannot) exist when the employment rate is high (low), which leads to higher (lower) economic growth through labour market efficiency. We also explore the steady state and transitional dynamics of bubbles, economic growth and employment. Furthermore, we show that policy or parameter changes with a negative influence on the labour market can lead to a bubble burst.