Accounting for Growth Disparity: Lucas's Framework Revisited

Abstract

This paper proposes a theoretical method to account for historical episodes of growth disparity. A numerical computation shows that the properties of the local dynamics of the proposed model are consistent with the facts indicated by selected episodes.

Seeking a Better Recovery Process from Major Natural Disasters: A Lesson from Several Growth Models with Multiple Equilibria

“…The three models of Daitoh [8], Hosoya [9], and Agénor [10] we introduce in this paper can be seen as extensions of these contributions. By examining these models gradually and multilaterally, we hope to extract economic conditions that promote recovery projects.…”

“…Then, by additionally examining Hosoya [9] and Agénor [10], which have characteristics different from Daitoh [8], we further address the targeted issue.…”

“…Specifically, recovery from massive disaster corresponds to the process of rebuilding lost infrastructure. Hosoya [9] and Agénor [10] provide models that include these factors.…”

“…Figure 3 shows a typical pattern of the Figure 3. Multiple equilibria and self-fulfilling expectations in Hosoya [9]. dynamics.…”

“…The following describes the model of Hosoya [9], which considers public infrastructure with the standard optimal growth model as the development device.…”