Abstract
Imagine an economic process modeled with help of ordinary differential equations with some fixed initial conditions and suppose that a solution to the system under consideration, for some reason, should enjoy desired conditions. It appears that small changes in the system describing the modeled process may have devastating effect on the fulfillment of the desired conditions by solutions of the perturbed system. Such a feature of a system is called a knife-edge condition in the literature on economic growth and it has recently found some deeper interest in that literature. However, the available results seem to be unclear and not correct – this paper shows how to correct and improve these results, creating consistent mathematical foundations of that theory. The main contribution of the paper is that knife-edge conditions are present whenever long-term unbounded growth of an economic variable is required as (or implied by) a desired regularity condition.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
