Abstract
In this paper, an urban economic growth model with endogenous infrastructure allocation is given by introducing the two-variable utility function for city's inhabitant. A two- dimensional dynamical system is obtained by solving the utility maximization problem and it is proved that this system has the unique non-zero equilibrium which is a saddle. The model has the unique optimal growth and an optimal rate of infrastructure allocation.
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More From: Applied Mathematics-A Journal of Chinese Universities
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