Article Abstract:
Quantitative transitional dynamics in neoclassical models of capital accumulation and their relationship to economic growth were studied. The research indicated that transitional dynamics were useful in explaining growth in the short term, but not in explaining long-term differences in rates of growth. The neoclassical model could be useful in the long term if agents had low intertemporal elasticity of substitution in consumption. Transitional dynamics were useful if the marginal product of capital was very high during the first phases of economic growth.
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Article Abstract:
Interest in studying the role of income distribution in the process of economic growth has increased. Four models of the impact of political outcome resulting from a particular income distribution on growth have been developed. These models are based on the theory that a nondegenerate initial income or wealth distribution pattern exists, along with a government that uses proportional taxation for financing production services, education or redistribution. Variations in the economic structure and the political mechanisms of the models exist.
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Article Abstract:
The connectedness of real and monetary phenomena is examined in a model of endowments, preferences, and technology. The specialization of labor, trade volume, and complexity of financial instruments is limited by the extent of the market. Centralization of the economy causes an increase in labor specialization.
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