Scholarlink

<p>In this paper, I develop a two-sector growth model with endogenous labour supply in which the non-reproducible factor is employed uniquely in the production of investment goods. Relying on Cobb-Douglas technologies, logarithmic utility of consumption and separate CRRA disutility for labour provision, I show that a centralized solution characterized by a meaningful steady state and the determinacy of equilibrium trajectories requires constant returns to scale only in the production of new equipment. Moreover, I show that a calibrated version of the model tailored on the US economy leads to a marginal rate of transformation between consumption and investment goods lower than one in absolute value, and it is also able to provide a rationale for the procyclical patterns of the relative price of capital goods and the real wage.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

A two-sector model of optimal growth in which labour is employed only in the industry of investment goods: a complete characterization of equilibrium paths

  • 期刊论文

  • 出版模式：

    开放获取

  • 发表日期：

    2026年6月29日

查看全文
  • Marco Guerrazzi

摘要

In this paper, I develop a two-sector growth model with endogenous labour supply in which the non-reproducible factor is employed uniquely in the production of investment goods. Relying on Cobb-Douglas technologies, logarithmic utility of consumption and separate CRRA disutility for labour provision, I show that a centralized solution characterized by a meaningful steady state and the determinacy of equilibrium trajectories requires constant returns to scale only in the production of new equipment. Moreover, I show that a calibrated version of the model tailored on the US economy leads to a marginal rate of transformation between consumption and investment goods lower than one in absolute value, and it is also able to provide a rationale for the procyclical patterns of the relative price of capital goods and the real wage.