Research on a dynamical macro-economic model based on Sidrauski model (Q5936236)

The dynamical macro-economical model is constructed. The utility function depending on per capita consumption level \(c\) and per capita money holding \(m\) is introduced. The paper presents the sufficient and necessary conditions of stability of the model at equilibrium states. These conditions are based on the Routh-Hurwitz criteria. These results are applied to production functions of special forms (e.g. to a Cobb-Douglas production function). Economical explanation is given and the recommendations for the long-term stable growth of Chinese economy are formulated.