Balanced growth without constant returns to scale
The article deals with a nonlinear input-output model \(x(t+1)=H(x(t))\), where \(x(t)\in R^ n_+\) and \(H: R^ n_+\to R^ n_+\) is a continuous monotonous mapping. The existence and relative stability of a unique balanced growth path is established under some assumptions on H. The usual assumption of homogeneity is replaced by two additional assumptions, which allow the growth rate of the balanced growth path to fluctuate.
scientific article; zbMATH DE number 3974678