SECTOR-SPECIFIC CAPITAL, BANG-BANG INVESTMENT, AND THE FILIPPOV SOLUTION

Authors
VANMARREWIJK C VERBEEK J
Citation
C. Vanmarrewijk et J. Verbeek, SECTOR-SPECIFIC CAPITAL, BANG-BANG INVESTMENT, AND THE FILIPPOV SOLUTION, Journal of economics, 57(2), 1993, pp. 131-146
Citations number
31
Categorie Soggetti
Economics
Journal title
Journal of economics → ACNP
ISSN journal
09318658
Volume
57
Issue
2
Year of publication
1993
Pages
131 - 146
Database
ISI
SICI code
0931-8658(1993)57:2<131:SCBIAT>2.0.ZU;2-5
Abstract
''Bang-bang'' investment in a two-sector growth model with immobile ca pital is ''rational'' and leads to a unique and globally stable long-r un equilibrium along a ''sliding trajectory.'' This steady state coinc ides with the stationary equilibrium in the traditional model with non -sector-specific capital.