European Business Schools Librarian's Group

Working Papers,
University of Aarhus, Aarhus School of Business, Department of Economics

No 04-13: Factor Intensity Reversal and Ergodic Chaos

Aditya Goenka () and Odile Poulsen ()
Additional contact information
Aditya Goenka: Department of Economics, Aarhus School of Business, Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
Odile Poulsen: Department of Economics, Aarhus School of Business, Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark

Abstract: This paper studies a two-sector endogenous growth model with

labour augmenting externalities or Harrod-Neutral technical change. The

technologies are general and the preferences are of the CES class. If con-

sumers are su±ciently patient, ergodic chaos and geometric sensitivity to

initial conditions can emerge if either (1) there is factor intensity reversal;

or (2) if the consumption goods producing sector is always capital intensive.

The upper bound on the discount rate is determined only by the transver-

sality condition. If utility is linear, there can be chaos only if there is factor

intensity reversal

Keywords: Ergodic Chaos; Two-sector endogenous growth model; Factor intensity reversal; Labor-augmenting externalities

JEL-codes: C61; D90; O41

29 pages, December 10, 2004

Full text files 

04-13_agodp.pdf PDF-file

Download statistics

Questions (including download problems) about the papers in this series should be directed to Helle Vinbaek Stenholt ()
Report other problems with accessing this service to Sune Karlsson ().

RePEc:hhs:aareco:2004_013This page generated on 2024-09-13 22:19:12.