On the Stability of Growth Equilibria in Two-Sector Models
In an ingenious paper , Uzawa has shown the global stability of the balanced growth equilibria in two-sector models of economic growth. Compared to the complex features of these models, the results are surprisingly simple and clear, and I believe that this is one of the most important contributions to the economic growth theories, and the structures of the models or equivalently the relationship between the assumptions and results in such an important work will be worth while to be studied in more detail. To the convenience for the following discussions, the results obtained by Uzawa shall be summarized here.
KeywordsGlobal Stability Consumption Good Indifference Curve Walrasian Equilibrium Saving Ratio
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