Dynamic Adjustments in a Two-Sector Model

  1. F. Galera 1
  2. P. Coto-Millán 2
  1. 1 Universidad de Navarra
    info

    Universidad de Navarra

    Pamplona, España

    ROR https://ror.org/02rxc7m23

  2. 2 Universidad de Cantabria
    info

    Universidad de Cantabria

    Santander, España

    ROR https://ror.org/046ffzj20

Livre:
Essays on microeconomics and industrial organisation
  1. Pablo Coto-Millán (coord.)

Éditorial: Physica-Verlag

ISBN: 3-7908-1390-7,  9783790801040

Année de publication: 2002

Pages: 333-341

Type: Chapitre d'ouvrage

DOI: 10.1007/978-3-7908-2670-8_22 DIALNET GOOGLE SCHOLAR

Objectifs de Développement Durable

Résumé

This paper presents a simple dynamic model in which only one resource is used centirely in order to produce two goods. Technology displays constant returns in both cases. The resource is owned by a few individuals who must choose between the two activities in which to use it. Here we analyse the decisions of change of activity in which the resource is to be used taking into account the different profitability per time unit of the activities directed to produce both goods. We show that, under certain conditions, it is possible to reach cyclic, or chaotic, dynamics so that the returns per factor may never be equal in both sectors.

La source de données: Dialnet