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Explicit Transitional Dynamics in Growth Models

By Danyang Xie

Abstract

Transitional dynamics in growth models have been subject to much attention recently. With a few exceptions, existing studies rely on computational techniques. This paper uses a set of examples to illustrate that qualitative insights on the transitional dynamics can be gained at the expense of using special utility-production pairs. In continuous time framework, necessary and sufficient conditions are established for a utility-production pair to yield explicit dynamics. These conditions are potentially useful for applications in other dynamic settings.Transitional Dynamics, Growth

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