Multiple equilibria, coordination, and transitional growth

• 成果类型: Article
• 署名作者: Karayalçin, C; Mitra, D
• 署名单位: State University System of Florida; Florida International University
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/S0304-3878(99)00055-3
• 发表日期: 1999
• 页码: 297-316
• 关键词: Multiple equilibria; COORDINATION; learning; Replicator dynamics; TRANSITION

摘要

We study a small open economy with two sectors and two factors of production, in one of the sectors, external economies of scale are generated through the industry-level capital input. This leads to a divergence between private and social production possibility frontiers as well as to multiple equilibria. The equilibrium selection problem that arises is solved by agents who follow a simple trial-and-error learning rule. The growth path of the economy as agents learn lies below the production possibility frontier and may display cyclical transitional dynamics. We also show that coordination problems which may prevent the economy from attaining the good equilibrium may be alleviated by the temporary use of policy instruments that shape the allocation of resources. (C) 1999 Elsevier Science B.V. All rights reserved.