Econometrica Vol. 42 No. 6 1974
Short-Run Equilibrium and Stability in the Two-Sector Growth Model
Abstract
[This paper demonstrates how the short-run static stability conditions of the two-sector growth model can be derived by converting the problem into a two-person, two-good exchange model. It is shown that the only necessary and sufficient condition for short-run stability is the Marshall-Lerner condition, and that the Drandakis (sufficient) condition follows easily from the former.]
- DOI
- 10.2307/1914219
- Volume
- 42
- Issue
- 6
- Pages
- 1081
- Sources
- bibtex:phds-export.bib openalex crossref