Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/25059 
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dc.contributor.authorBethmann, Dirken
dc.date.accessioned2005-10-26-
dc.date.accessioned2009-07-23T14:43:07Z-
dc.date.available2009-07-23T14:43:07Z-
dc.date.issued2005-
dc.identifier.urihttp://hdl.handle.net/10419/25059-
dc.description.abstractThis paper extends the class of stochastic AK growth models with a closed-form solution to the case where there are two capital goods in the model. To be precise, we consider the Uzawa-Lucas model of endogenous growth with human and physical capital. The extension holds, even if an external effect in the use of human capital in goods production occurs. Using the guess and verify method, we determine the value function of the social planner in the centralized economy and the value function of the representative agent in the decentralized case. We show that the introduction of income taxes on wages and of a subsidy on physical capital earnings is able to help the decentralized economy in reaching the social optimum, while keeping the policy maker's budget balanced. Then the time series implications of the model's solution are derived. In Appendix to the paper the uniqueness of the value functions is proved by using an alternative method.en
dc.language.isoengen
dc.publisher|aHumboldt University of Berlin, Collaborative Research Center 649 - Economic Risk |cBerlinen
dc.relation.ispartofseries|aSFB 649 Discussion Paper |x2005,033en
dc.subject.jelC61en
dc.subject.jelC62en
dc.subject.ddc330en
dc.subject.keywordclosed-form solutionen
dc.subject.keywordvalue functionen
dc.subject.keywordsaddle path stabilityen
dc.subject.keywordendogenous growthen
dc.titleNotes on an endogenous growth model with two capital stocks II: the stochastic case-
dc.type|aWorking Paperen
dc.identifier.ppn501740201en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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