Delay two-sector economic growth model with a Cobb-Douglas production function (Q2044825)

The paper is devoted to the analysis of economic growth in two-sector models. It is demonstrated the possibility of cyclic capital accumulation in the case in which there are delays in capital implementation and estimation of capital depreciation. A two-sector growth model with Cobb-Douglas production function is built. More precisely in this paper, the authors investigate the extended ``Uzawa model'' with special Cobb-Douglas type production functions. It is shown that the stability of the balanced growth may change as lengths of delay change. It is also shown that on the stability switching curve the stability is lost and bifurcates to a limit cycle via a Hopf bifurcation. In Sect. 4, the stability switch and stability index associated with the two delay model are explained in detail.