Chaotic equilibrium dynamics in endogeneous growth models (Q5931245)

The author construct a class for aggregate two-sector endogenous growth model with a positive external effect and unbounded accumulation. They develop a method of characterizing the global equilibrium dynamics when the equilibrium trajectory does not converge to a balanced growth trajectory and shows under which conditions a cyclical and chaotic trajectory can be obtained in the model. The results demonstrate that in a two-sector economy with positive externalities and unbounded accumulation trend and cycles in aggregate variables can be generated by the same endogeneous economic agents.