The condition of self-steering of economic development (Q582194): Difference between revisions

This paper first provides a definition of the concept that in a dynamical system trajectories starting near a given point converge to a specific, possibly unbounded, trajectory emanating from the point under consideration. If the trajectory is unbounded the system is called self- steering. The main purpose of the paper is to determine conditions for self-steering of some models from population economics and economic growth theory. The first application is a parametric form of the model of Steimann- Komlos in which the Cobb-Douglas type production function depends on exogenous technological progress, capital, labor and a natural resource. There are constant returns to scale in capital, labor and natural resource. The last factor is taken as constant, while labor grows exogenously and capital growth is determined by savings and depreciation. The second set of models consists of variants of Solow's growth models and Lucas' models with human capital. The paper concludes with a discussion of the possible limitations of stability analysis in terms of per capita variables versus absolute variables.