Proportional economic growth under conditions of limited natural resources

The paper is devoted to economic growth models in which the dynamics of production factors satisfy proportionality conditions. One of the main production factors in the problem of optimizing the productivity of natural resources is the current level of resource consumption, which is characterized by a sharp increase in the prices of resources compared with the price of capital. Investments in production factors play the role of control parameters in the model and are used to maintain proportional economic development. To solve the problem, we propose a two-level optimization structure. At the lower level, proportions are adapted to the changing economic environment according to the optimization mechanism of the production level under fixed cost constraints. At the upper level, the problem of optimal control of investments for an aggregate economic growth model is solved by means of the Pontryagin maximum principle. The application of optimal proportional constructions leads to a system of nonlinear differential equations, whose steady states can be considered as equilibrium states of the economy. We prove that the steady state is not stable, and the system tends to collapse (the production level declines to zero) if the initial point does not coincide with the steady state. We study qualitative properties of the trajectories generated by the proportional development dynamics and indicate the regions of production growth and decay. The parameters of the model are identified by econometric methods on the basis of China’s economic data.     

THE C-K MODEL WITH SOLVABLE ENDOGENOUS FERTILITY

§ 1　 IntroductionThe relationship of population and economic growth is one of the most importantproblems in modern economic growth theory.Establishing a mathematical model theoreti-cal to study the interrelation of population and economic growth becomes a fundamentalmethod in this field[1～ 7] .In the papers[8,9] ,we obtain the especial C-K models with solv-able endogenous fertility under the specified strongly additive utility function and Cobb-Douglas production function.In the models,th…     

可解内生生育率的C-K模型

Abstract. In this paper,a C-K model with solvable endogenous fertility under the strongly addi-tive utility function is presented. The discrimination conditions of the existence of the nonzerosteady states are given. Under a kind of utility function and production function,we prove thatthese conditions are satisfied and the economy at least has an optimal growth path. The position-al relationship of the multiple steady states on the plane is discussed when multiple steady statesand multiple growth paths exist. By numerical analysis ,the fertility decreses with the per capitacapital and per capita consumption increasing and increases with the per capita capital and percapita consumption decreasing on the economic growth path are obtained.     

Wealth-sensitive positional competition as a source of dynamic complexity in OLG models

This paper examines the interactions between economic activity and consumption externalities in an overlapping generations model. Existence of multiple steady states is studied from a global point of view, and possible mechanisms producing cycles and chaotic behavior are analyzed. Wealth-sensitive positionality is found to be able to generate persistent endogenous fluctuations, whereas wealth-neutral positionality doesn’t. Under wealth-sensitive positionality, the economy may moreover experience complex dynamics, with sensitivity to initial conditions, leading to poverty traps even when starting from relatively large endowments of capital assets.     

Overlapping Generations Model with Endogenous Labor Supply: General Formulation

This paper develops a one-sector overlapping generations model with endogenous labor supply and nonseparable preferences. It demonstrates that local indeterminacy arises easily under gross substitutability as soon as there exist multiple steady states. We show also that, depending on whether leisure and second-period consumption are gross substitutes, local indeterminacy holds for very different parameter configurations. If gross substitutability is satisfied, the existence of multiple equilibrium paths requires the share of capital in the total income to be strong enough with respect to the elasticity of capital-labor substitution. On the other hand, if gross substitutability is violated, local indeterminacy necessitates the share of capital in the total income to be weak enough with respect to the elasticity of capital-labor substitution. This paper is dedicated to the memory of Louis-André Gérard-Varet, Director of GREQAM from 1987 to 1999. We thank S. Catania, C. Deissenberg, J. P. Drugeon, L. A. Gérard-Varet, J. M. Grandmont, A. Kirman, T. Lloyd-Braga, P. Michel, P. Pintus,E.Thibault, B.Wigniolle, and two anonymous referees for helpful comments and suggestions. The paper benefited from comments received during a presentation at the Conference on Dynamic Equilibria, Expectations and Indeterminacies, Paris. France, 1999.     

Productive public expenditures, expectation formations and nonlinear dynamics

In this paper, we investigate the dynamic properties of an overlapping generations’ model with capital accumulation and publicly funded inventions under three different expectations: perfect foresight, myopic expectations and adaptive expectations. We show that considering productive public expenditures in the model will increase the dimension of the dynamical system. To study the dynamic behavior of a high-dimensional dynamical system, we focus on the case when the elasticity of publicly funded invention to output is small and approximate the system by using a one-dimensional dynamical system. This approximation method provides an efficient way to rigorously prove the existence of chaos in high-dimensional dynamical systems. We show that when agents are perfectly foresighted, there exists a unique, nontrivial steady state which is a global attractor. Cycles or even chaos may occur under myopic and adaptive expectations when the inter-temporal elasticity of substitution of consumption is large enough. Furthermore, we find that the impact of fiscal policy is sensible to the expectation formation.     

Equilibrium switching and mathematical properties of nonlinear interaction networks with concurrent antagonism and self-stimulation

Concurrent decision-making model (CDM) of interaction networks with more than two antagonistic components represents various biological systems, such as gene interaction, species competition and mental cognition. The CDM model assumes sigmoid kinetics where every component stimulates itself but concurrently represses the others. Here we prove generic mathematical properties (e.g., location and stability of steady states) of n-dimensional CDM with either symmetric or asymmetric reciprocal antagonism between components. Significant modifications in parameter values serve as biological regulators for inducing steady state switching by driving a temporal state to escape an undesirable equilibrium. Increasing the maximal growth rate and decreasing the decay rate can expand the basin of attraction of a steady state that contains the desired dominant component. Perpetually adding an external stimulus could shut down multi-stability of the system which increases the robustness of the system against stochastic noise. We further show that asymmetric interaction forming a repressilator-type network generates oscillatory behavior.     

Multiple Equilibria and Thresholds Due to Relative Investment Costs

A dynamic model of the firm is studied in which investment costs depend on the magnitude of the investment relative to the stock of capital goods. It is shown that in general nonunique steady states can exist which can be stable or unstable. It is possible that unstable steady states occur in the concave domain of the Hamiltonian. For a particular specification, a scenario occurs with two stable steady states and one unstable steady state. The two stable steady states are long run equilibria; which one of them is reached in the long run depends on the initial state. In case the Hamiltonian is locally concave around the unstable steady state, this steady state is the threshold that separates the domain of initial conditions that each of the stable steady states attracts. The unstable steady state is a node and investment is a continuous function of the capital stock. If the unstable steady state lies in the nonconcave domain of the Hamiltonian, this steady state can either be a node or a focus. Furthermore, continuity can (but need not) be retained similarly to the concave case, a fact which has been entirely overlooked in the literature.     

The Interaction of Shocks with Dispersive Waves I. Weak Coupling Limit

We introduce and analyze a model for the interaction of shocks with a dispersive wave envelope. The model mimicks the Zakharov system from weak plasma turbulence theory but replaces the linear wave equation in that system by a nonlinear wave equation allowing the formation of shocks. This paper considers a weak coupling in which the nonlinear wave evolves independently but appears as the potential in the time-dependent Schrodinger equation governing the dispersive wave. We first solve the Riemann problem for the system by constructing solutions to the Schrodinger equation that are steady in a frame of reference moving with the shock. Then we add a viscous diffusion term to the shock equation and by explicitly constructing asymptotic expansions in the (small) diffusion coefficient, we show that these solutions are zero diffusion limits of the regularized problem. The expansions are unusual in that it is necessary to keep track of exponentially small terms to obtain algebraically small terms. The expansions are compared to numerical solutions. We then construct a family of time-dependent solutions in the case that the initial data for the nonlinear wave equation evolves to a shock as t → t* < ∞. We prove that the shock formation drives a finite time blow-up in the phase gradient of the dispersive wave. While the shock develops algebraically in time, the phase gradient blows up logarithmically in time. We construct several explicit time-dependent solutions to the system, including ones that: (a) evolve to the steady states previously constructed, (b) evolve to steady states with phase discontinuities (which we call phase kinked steady states), (c) do not evolve to steady states.     

An integro-differential equation arising as a limit of individual cell-based models

In this paper, we study mathematical properties of an integro-differential equation that arises as a particular limit case in the study of individual cell-based model. We obtain global well-posedness for some classes of interaction potentials and finite time blow-up for others. The existence of space homogeneous steady states as well as long-time asymptotics for the solutions of the problem is also discussed.     

Utilitarianism,prioritarianism, and intergenerational equity: A cake eating model

We use a simple consumption model, the so-called cake eating model, to study the interaction of equity, time and risk in social decision making. Total consumption, the “cake”, is uncertain. The social planner allocates consumption between two agents (representing two generations), by assigning the first a determinate amount, with the second receiving the risky remainder. We study this consumption allocation decision using three social welfare functions: utilitarianism, ex ante prioritarianism, and ex post prioritarianism. Under standard assumptions, ex ante prioritarianism allocates more consumption to the first generation than utilitarianism. Thus, a concern for equity, in the ex ante prioritarian sense, means less concern for the risky future. By contrast, ex post prioritarianism normally chooses less consumption for the first generation than utilitarianism. We discuss the robustness of these optimal consumption allocations to learning and to more complicated social welfare functions.     

Uniqueness and Nonuniqueness of Steady States of Aggregation-Diffusion Equations

We consider a nonlocal aggregation equation with degenerate diffusion, which describes the mean-field limit of interacting particles driven by nonlocal interactions and localized repulsion. When the interaction potential is attractive, it is previously known that all steady states must be radially decreasing up to a translation, but uniqueness (for a given mass) within the radial class was open, except for some special interaction potentials. For general attractive potentials, we show that the uniqueness/nonuniqueness criteria are determined by the power of the degenerate diffusion, with the critical power being m = 2. In the case m ≥ 2, we show that for any attractive potential the steady state is unique for a fixed mass. In the case 1 < m < 2, we construct examples of smooth attractive potentials such that there are infinitely many radially decreasing steady states of the same mass. For the uniqueness proof, we develop a novel interpolation curve between two radially decreasing densities, and the key step is to show that the interaction energy is convex along this curve for any attractive interaction potential, which is of independent interest. © 2020 Wiley Periodicals LLC.     

Dynamics of a system of three interacting populations with Allee effects and stocking

A model of three interacting populations where two populations engage in competition and two populations are in predator–prey type interaction is proposed and analysed. One of the two competing populations is subject to Allee effects and is also a pest population. The other competing population is regarded as a control agent and is the host for the predator population. There is a constant level of the external control agents released into the interaction at each generation after parasitism. We provide asymptotic dynamics of the competition subsystem and prove that a Neimark–Sacker bifurcation occurs for the host–parasitoid subsystem when the unique interior steady state loses its stability. The three interacting populations are impossible to persist for all positive initial conditions. Sufficient conditions based on the initial population size of the population with Allee effects are derived for persistence of the three populations.     

Asymptotic profiles of positive steady states for a diffusive predator–prey model with predator interference

This paper is concerned with positive steady states for a diffusive predator–prey model with predator interference in a spatially heterogeneous environment. We first establish the necessary and sufficient conditions for the existence of positive steady states. In order to get a better understanding of the structure of positive steady states, we further investigate the asymptotic profiles of positive steady states as some parameter tends to zero or infinity.     

Loops and branches of coexistence states in a Lotka-Volterra competition model

A two-species Lotka-Volterra competition-diffusion model with spatially inhomogeneous reaction terms is investigated. The two species are assumed to be identical except for their interspecific competition coefficients. Viewing their common diffusion rate μ as a parameter, we describe the bifurcation diagram of the steady states, including stability, in terms of two real functions of μ. We also show that the bifurcation diagram can be rather complicated. Namely, given any two positive integers l and b, the interspecific competition coefficients can be chosen such that there exist at least l bifurcating branches of positive stable steady states which connect two semi-trivial steady states of the same type (they vanish at the same component), and at least b other bifurcating branches of positive stable steady states that connect semi-trivial steady states of different types.     

A model of nonautonomous dynamics driven by repeated harmonic interaction

We consider an exactly solvable model of nonautonomous W*-dynamics driven by repeated harmonic interaction. The dynamics is Hamiltonian and quasifree. Because of inelastic interaction in the large-time limit, it leads to relaxation of initial states to steady states. We derive the explicit entropy production rate accompanying this relaxation. We also study the evolution of different subsystems to elucidate their eventual correlations and convergence to equilibriums. In conclusion, we prove that the W*-dynamics manifests a universal stationary behavior in a short-time interaction limit.     

Optimal overlapping and functional interaction in product development

Overlapping of development stages and interaction between different functions are regarded as important strategies for reducing development lead time. However, overlapping typically requires additional costs for rework and functional interaction increases communication time. This paper presents an analytical model to improve project performance by balancing the positive and negative effects of overlapping and functional interaction. We first investigate the progress of downstream development, which is essential to derive the optimal overlapping policies. We find that the downstream progress increases over time when the upstream evolution is fast or linear, but it is indefinite when the upstream evolution is slow. Then, we present optimal overlapping policies taking into account the complexity of downstream progress. The impact of different project properties, such as the dependency between development stages and the opportunity cost of time, on overlapping policies is discussed. Finally, we derive the optimal functional interaction strategy when the optimal overlapping is followed. The methodology is illustrated with a case study at a handset design company.     

Chaotic social interaction via endogenous reactivity

We propose a framework to analyse the dynamical process of decision and opinion formation of two economic homogeneous and boundedly rational agents that interact and learn from each other over time. The decisional process described in our model is an adaptive adjustment mechanism in which two agents take into account the difference between their own opinion and the opinion of the other agent. The smaller that difference, the larger the weight given to the comparison of the opinions. We assume that if the distance between the two opinions is larger than a given threshold, then there is no interaction and the agents do not change their opinion anymore. Introducing an auxiliary variable describing the distance between the opinions, we obtain a one-dimensional map for which we investigate, mainly via analytical tools, the stability of the steady states, their bifurcations, as well as the existence of chaotic dynamics and multistability phenomena.     

Mean Buffer Contents in Discrete-Time Single-Server Queues with Heterogeneous Sources

We consider discrete-time single-server queues fed by independent, heterogeneous sources with geometrically distributed idle periods. While being active, each source generates some cells depending on the state of the underlying Markov chain. We first derive a general and explicit formula for the mean buffer contents in steady state when the underlying Markov chain of each source has finite states. Next we show the applicability of the general formula to queues fed by independent sources with infinite-state underlying Markov chains and discrete phase-type active periods. We then provide explicit formulas for the mean buffer contents in queues with Markovian autoregressive sources and greedy sources. Further we study two limiting cases in general settings, one is that the lengths of active periods of each source are governed by an infinite-state absorbing Markov chain, and the other is the model obtained by the limit such that the number of sources goes to infinity under an appropriate normalizing condition. As you will see, the latter limit leads to a queue with (generalized) M/G/∞ input sources. We provide sufficient conditions under which the general formula is applicable to these limiting cases.AMS subject classification: 60K25, 60K37, 60J10This revised version was published online in June 2005 with corrected coverdate     

Endogenous Fluctuations in Two-Sector Models: Role of Preferences

We consider a discrete-time two-sector CES (constant elasticity of substitution) economy with sector specific external effects and nonlinear preferences. Our goal is to examine carefully the influence of the utility curvature on the occurrence of multiple equilibria. We show that local indeterminacy depends on an interplay between factor substitutability and the elasticity of intertemporal substitution in consumption. Moreover, considering that, when the external effects are set equal to zero, we get a two-sector optimal growth model, we study also the role of the utility curvature on the occurrence of competitive equilibrium cycles. We show that persistent endogenous fluctuations and macroeconomic volatility require a strong enough elasticity of intertemporal substitution in consumption. We thank two anonymous referees for helpful comments and suggestions. External effects are feedbacks from the other agents in the economy who face also identical maximizing problems. See Benhabib and Farmer (Ref. 1) for a survey. Global indeterminacy based on a finite number of equilibria is associated with the existence of thresholds and multiple steady states. See Deissenberg, Feichtinger, Semmler, and Wirl (Ref. 2).