Abstract This paper shows that the dynamics of Lucas (J Monet Econ, 22:3–42, 1988) endogenous growth model with flow externalities may give rise to a 2-torus, compact three-dimensional manifold enclosed by two-dimensional surface. The implications this result are relevant for many fields economic theory. It is first all clear if we choose initialize in basin attraction trapping region, continuu...

We introduce a simple method of analyzing the transitional dynamics of the Uzawa-Lucas endogenous growth model with human capital externalities. We use the value function approach to solve both the social planner’s optimization problem in the centralized economy and the representative agent’s optimization problem in the decentralized economy. The complexity of the Hamilton-Jacobi-Bellman equati...

this paper using endogenous growth models based on research and development, has investigated two economic relations in three groups of countries included developed countries, developing countries and a mixed group of both mentioned ones. at first, the effects of r&d; activities on patent growth have examined and then the relation between volume of patent and growth rate in these groups has sur...

The Lucas Critique of Econometric Policy Evaluation argues that the parameters of econometric models are subject to theoretical cross-equation restrictions which follow from the fact that the endogenous variables of the models are chosen optimally by forward-looking agents. In this paper I argue that these facts alone are insufficient to generate such restrictions. I present an example of a mod...

We evaluate whether the introduction of pessimistic homogeneous beliefs in the frictionless Lucas-Mehra-Prescott model and the Kehoe-Levine-Alvarez-Jermann model with endogenous borrowing constraints, helps explain the equity premium, the risk-free rate and the equity volatility puzzles as well as the short-term momentum and long-term reversal of excess returns. We calibrate the model to U.S. d...

this paper estimates the effects of increase in iran’s non-oil exports on its economic growth as well as sectoral outputs, using a single country, comparative static, exogenous policy computable general equilibrium (cge) model. the paper also investigates the share of tradable sectors in reaching to the targeted growth rate (8%) in 5th socio-economic development plan. for this purpose, the para...

in this paper, we develop a ramsey-type endogenous growth model in which government spending on property rights protection is a major determinant of economic growth. this model includes equations for welfare, private and public sectors production. we introduce the legal efficiency into private production function, and x-inefficiency parameter into public production function. also, we consider t...

There is by now reasonable evidence that supports the notion of a trend break in US GDP since Great Recession. To explain this phenomenon, I construct version Lucas endogenous growth model, amplified with financial frictions and disruptions firms' sector. then show how transitory liquidity crunch capable, at least qualitatively, producing similar pattern persistent downward shift as one could i...

Several of the economically interesting aspects of the Uzawa-Lucas model are not really emphasized in the exposition in B & S, Section 5.2.2, which instead focusses on quite technical aspects such as the transitional dynamics of (a simplified version of) the model. Hence, in this lecture note I shall attempt to give an account of the Uzawa-Lucas model which closer to the presentation in Lucas (...