Two-hour workshop on growth dynamics
Timo Trimborn & Karl-Josef Koch, University of Hamburg
The workshop covers two important subjects of (endogenous) growth theory, each taking about an hour. The first subject covered in the first part of the seminar deals with the need/desirability to broaden our ‘standard’ concept of growth to that of so-called regular growth, that goes beyond the ‘standard’ of exponential steady state growth, but that still includes the latter as a special case. The second part is complementary to the first part in the sense that the focus is again on growth theory but now on transitional dynamics rather than the steady state, as the latter is a mythical state that will never be reached. Transition is the norm therefore, and transitional dynamics are the most relevant from almost any perspective. Nonetheless, transitional dynamics are hard to capture in practice. The emphasis of the second part of the seminar is on particular (relaxation) algorithms that can be used to study transitional dynamics, with a demonstration of the results from an application to the relatively complicated transitional dynamics of the Lucas growth model.
Date: 17 October 2006