Delay growth model augmented with physical and human capitals. (January 2020)

• Record Type: Journal Article
• Authors: Matsumoto, Akio; Szidarovszky, Ferenc
• Is Part Of: Chaos, solitons and fractals. Volume 130(2020)
• Publication Date: 2020-01
• Subjects: Extended Solow model -- Delayed dynamics -- Two delays -- Asymptotic behavior; Chaotic behavior in systems -- Periodicals; Solitons -- Periodicals; Fractals -- Periodicals; Chaotic behavior in systems; Fractals; Solitons; Periodicals; 003.7
• DOI: 10.1016/j.chaos.2019.109452
• Languages: English
• ISSNs: 0960-0779

Abstract

Abstract: A growth model with a special production function augmented with physical capital and human capital is modified and used to explain the birth of cyclical dynamics. Crucial feature of the model is the assumption that there are a gestation delay and a maturation delay in constructing physical capital and human capital, respectively. Dynamics is described by a continuous time system of delay differential equations. Stability switching curves and directions of stability switches are analytically derived where stability of the model might be lost and regained. Its shape is numerically verified and it is confirmed that the two-delay model can generate a wide variety of dynamics from simple dynamics to complex dynamics.