Dynamic properties of the Solow model with bounded technological progress and time-to-build technology.
We introduce a time-to-build technology in a Solow model with bounded technological progress. Our analysis shows that the system may be asymptotically stable, or it can produce stability switches and Hopf bifurcations when time delay varies. The direction and the stability criteria of the bifurcating periodic solutions are obtained by the normal form theory and the center manifold theorem. Numerical simulations confirms the theoretical results.
Department of Management, Polytechnic University of Marche, 60121 Ancona, Italy.
Luca
0000-0001-8489-5531
L
Guerrini
Department of Economics and Management, University of Pisa, 56124 Pisa, Italy.
Mauro
M
Sodini
D000465:Algorithms; D003198:Computer Simulation; D008962:Models, Theoretical; D015203:Reproducibility of Results; D013672:Technology / Q000191:economics* / Q000639:trends; D013997:Time Factors