Homoclinic bifurcation and global indeterminacy of equilibrium in a two-sector endogenous growth model |
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| Authors: | Paolo Mattana Kazuo Nishimura Tadashi Shigoka |
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| Institution: | The Department of Economics, The University of Cagliari, Cagliari, Italy.;Institute of Economic Research, Kyoto University, Kyoto Japan.;Institute of Economic Research, Kyoto University, Kyoto Japan. Email: |
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| Abstract: | 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. |
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| Keywords: | endogenous growth multiple balanced growth paths homoclinic bifurcation global indeterminacy of equilibrium |
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