Atavistic dynamics in a two-sector economy (Q1321551)
From MaRDI portal
scientific article
| Language | Label | Description | Also known as |
|---|---|---|---|
| English | Atavistic dynamics in a two-sector economy |
scientific article |
Statements
Atavistic dynamics in a two-sector economy (English)
0 references
28 April 1994
0 references
The paper demonstrates that the market instability can be generated under appropriate restrictions on factor intensities and discounting. When the economy is close to equilibrium, the representative agent may both underemploy labor and invest in capital that is not sustained in equilibrium. This policy pulls the economy away from equilibrium for a significant period of time and is denoted atavistic.
0 references
two-sector economy
0 references
atavistic dynamics
0 references
dynamic competitive equilibrium
0 references
market instability
0 references
discounting
0 references
