Oscillations in a Growth Model with Capital, Technology and Environment with Exogenous Shocks

Wei-Bin Zhang
Abstract:
This paper generalizes the dynamic growth model with wealth accumulation, technological change and environmental change by Zhang (2012) by making all the parameters as time-dependent parameters. The model treats physical capital accumulation, knowledge creation and utilization, and environmental change as endogenous variables. It synthesizes the basic ideas of the neoclassical growth theory, Arrow’s learning-by-doing model and the traditional dynamic models of environmental change within a comprehensive framework. The behavior of the household is described with an alternative approach to household behavior. We simulated the model to demonstrate existence of equilibrium points, motion of the dynamic system, and oscillations due to different exogenous shocks.

Keywords:
perturbations; economic oscillations; economic growth; technological change; wealth accumulation

Full text available in PDF: Academicus-MMXV-12-073-093.pdf

Digital Object Identifier (DOI): http://dx.medra.org/10.7336/academicus.2015.12.05

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