Abstract
This study presents an adaptive economizing model of economic growth based on boundedly rational agents that incorporates infrastructure in terms of physical and human capital and a utility function based on a lexicographic preference ordering of present and future potential consumption. We show that capital accumulation trajectories are both generically asymptotically stable and generically unstable, converging to a steady state or fluctuating around one depending on the weight given by a given generation to its heirs.
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Day, R.H., Wang, Z., Zhang, M. (1998). Infrastructure in an Adaptative Economizing Model of Economic Growth. In: Abraham-Frois, G. (eds) Non-Linear Dynamics and Endogenous Cycles. Lecture Notes in Economics and Mathematical Systems, vol 463. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-58901-0_2
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DOI: https://doi.org/10.1007/978-3-642-58901-0_2
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-64321-0
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