Dynamic Adjustments in a Two-Sector Model View Full Text


Ontology type: schema:Chapter     


Chapter Info

DATE

2002

AUTHORS

Francisco Galera , Pablo Coto-Millán

ABSTRACT

This paper presents a simple dynamic model in which only one resource is used entirely in order to produce two goods. Technology displays constant returns in both cases. The resource is owned by a few individuals who must choose between the two activities in which to use it. Here we analyse the decisions of change of activity in which the resource is to be used taking into account the different profitability per time unit of the activities directed to produce both goods. We show that, under certain conditions, it is possible to reach cyclic, or chaotic, dynamics so that the returns per factor may never be equal in both sectors. More... »

PAGES

183-191

Book

TITLE

Essays on Microeconomics and Industrial Organisation

ISBN

978-3-7908-1390-6
978-3-662-11710-1

Identifiers

URI

http://scigraph.springernature.com/pub.10.1007/978-3-662-11710-1_13

DOI

http://dx.doi.org/10.1007/978-3-662-11710-1_13

DIMENSIONS

https://app.dimensions.ai/details/publication/pub.1009178758


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