Saving and investment in a two-sector model of endogenous growth of a small open economy

We develop a two sector model of endogenous growth. The export sector is the only sector that generates technological progress. Technological knowledge can be used by the import sector. Firms face adjustment costs for investment. The model has well defined equations for the growth rate of capital, and for the growth rate of consumption. The model has a steady state solution. We study the relation between the interest rate and the growth rate. The optimal growth rate is higher than that achieved in the market economy without government. The optimal policy is an investment subsidy in the export sector.

AN ECONOMETRIC EVALUATION OF STABILIZATION POLICIES FOR THE U.S. GRAIN MARKET

This paper evaluates stabilization policies by applying methods of stochastic control and dynamic analysis to an econometric model of the U.S. grain market. Its main results are: (1) the aggregate consumer and producer surplus generated by the model is insensitive to the choice of the market regime; (2) policies directed to stabilize prices at levels compatible with nondecreasing farm revenue require the management of both grain inventories and domestic supply; (3) price fluctuations are significantly less under optimal stabilization than in the unregulated version of the model; and (4) historical policies have destabilizing effects on the market model.Crop Production/Industries,

Productivity, Structural Change in Employment and Economic Growth

We develop an endogenous growth model with two sectors, manufacturing and non-manufacturing. The manufacturing sector is the source of the balanced productivity growth. We study how the economy responds to shifts in sector-specific productivity. Thus, when the sector-specific productivity in the manufacturing sector increases, we find that the fraction of labor employed in the manufacturing sector follows an inverted V curve, and that the growth rate increases. Thus, the model captures approximately the documented pattern of development for the share of manufacturing employment, a bell shape over time. When the sector-specific productivity in the non-manufacturing sector increases, the growth rate remains unchanged because the non-manufacturing sector is the non-learning sector.manufacturing sector, learning by doing, productivity, structural change, growth

Robust Transitivity in Hamiltonian Dynamics

A goal of this work is to study the dynamics in the complement of KAM tori with focus on non-local robust transitivity. We introduce $C^r$ open sets ($r=1, 2, ..., \infty$) of symplectic diffeomorphisms and Hamiltonian systems, exhibiting "large" robustly transitive sets. We show that the $C^\infty$ closure of such open sets contains a variety of systems, including so-called a priori unstable integrable systems. In addition, the existence of ergodic measures with large support is obtained for all those systems. A main ingredient of the proof is a combination of studying minimal dynamics of symplectic iterated function systems and a new tool in Hamiltonian dynamics which we call symplectic blender.Comment: 52 pages, 3 figure

Essential hyperbolicity and homoclinic bifurcations: a dichotomy phenomenon/mechanism for diffeomorphisms

We prove that any diffeomorphism of a compact manifold can be approximated in topology C1 by another diffeomorphism exhibiting a homoclinic bifurcation (a homoclinic tangency or a heterodimensional cycle) or by one which is essentially hyperbolic (it has a finite number of transitive hyperbolic attractors with open and dense basin of attraction)