2012 Fiscal Year Final Research Report
Optimal Program in the Two-Sector Economic Growth Model: Analysis andApplication
| Project/Area Number |
20730126
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| Research Category |
Grant-in-Aid for Young Scientists (B)
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| Allocation Type | Single-year Grants |
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| Research Field |
Economic theory
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| Research Institution | Yokohama National University (2009-2012)
Otaru University of Commerce (2008) |
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Principal Investigator |
FUJIO Minako 横浜国立大学, 国際社会科学研究科, 准教授 (80431394)
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| Project Period (FY) |
2008 – 2012
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| Keywords | 経済理論 / 経済成長 / 経済動学 |
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| Research Abstract |
This research project focuses on an economy with two production sectors producing consumption goods and investment goods respectively and analyzes theoretically how the economy behaves dynamically when resources are allocated every period of time so as to sustain an optimal growth. In the case of not discounting the future utility, the economy converges to the long run steady state so called the golden rule. However, in the case of discounting, it does not necessarily converge to the golden rule. Dynamic behavior of the economy depends on how much we discount the future welfare.
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