A dynamic analysis of an endogenous growth model with leisure
The model of endogenous growth is investigated. The steady-state equilibrium understood as physical-to-human capital ratio is of utmost interest. Its existence is stated under some conditions (Theorem 2.1). Besides, it is proved that some function is a Lyapunov function to the considered optimization problem. This fact implies the stability of its steady state. The paper is one of the works concerning economic growth models. Its characteristic feature is a proposal according to which human capital accumulation acts as the engine propelling economic activity. One more peculiarity of the model is that it takes leisure into consideration. In doing so, the author considers human capital as well as time devoted to the leisure-related activities to measure the effective amount of leisure. It should be mentioned that the author studies the equilibrium dynamic paths both in the long run as well as during the transitional period.
scientific article; zbMATH DE number 1507727