This work investigates the qualitative and quantitative dynamics of a Solow–Swan growth model with differential savings as proposed by Böhm and Kaas (J Econ Dyn Control 24:965–980, 2000) assuming the shifted Cobb–Douglas (SCD) production function (see Capasso et al. in Nonlinear Anal. 11:3858–3876, 2010) which makes it possible to consider the long-run dynamics of non-developed and developing countries as well as that of developed economies. The resulting model is described by a nonlinear discontinuous map generating both a poverty trap and complex dynamics. Furthermore, multistability phenomena may emerge: besides the “vicious circle of poverty”, long-run behaviours may include boom and bust periods. Complex basins can emerge, hence, economic policies trying to raise the capital per capita may fail and economies may be captured by the poverty trap.

Poverty trap, boom and bust periods and growth. A nonlinear model for non-developed and developing countries

Grassetti, Francesca;Mammana, Cristiana;Michetti, Elisabetta
2018-01-01

Abstract

This work investigates the qualitative and quantitative dynamics of a Solow–Swan growth model with differential savings as proposed by Böhm and Kaas (J Econ Dyn Control 24:965–980, 2000) assuming the shifted Cobb–Douglas (SCD) production function (see Capasso et al. in Nonlinear Anal. 11:3858–3876, 2010) which makes it possible to consider the long-run dynamics of non-developed and developing countries as well as that of developed economies. The resulting model is described by a nonlinear discontinuous map generating both a poverty trap and complex dynamics. Furthermore, multistability phenomena may emerge: besides the “vicious circle of poverty”, long-run behaviours may include boom and bust periods. Complex basins can emerge, hence, economic policies trying to raise the capital per capita may fail and economies may be captured by the poverty trap.
2018
Springer-Verlag Italia s.r.l.
Internazionale
http://springerlink.metapress.com/app/home/journal.asp?wasp=e0ggqgqvlk6e7r03eua0&referrer=parent&backto=linkingpublicationresults,1:100169,1
File in questo prodotto:
File Dimensione Formato  
Grassetti_Poverty-trap-boom_2018.pdf

solo utenti autorizzati

Tipologia: Versione editoriale (versione pubblicata con il layout dell'editore)
Licenza: DRM non definito
Dimensione 1.01 MB
Formato Adobe PDF
1.01 MB Adobe PDF   Visualizza/Apri   Richiedi una copia

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11393/248739
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 7
  • ???jsp.display-item.citation.isi??? 6
social impact