Characterization of equilibrium paths in the two-sector model with sector specific externality

Matsuo, Miki; Sakagami, Tomoya

doi:10.2969/aspm/05310151

VOL. 53 | 2009 Characterization of equilibrium paths in the two-sector model with sector specific externality

Miki Matsuo, Tomoya Sakagami

Editor(s) Saber Elaydi, Kazuo Nishimura, Mitsuhiro Shishikura, Nobuyuki Tose

Adv. Stud. Pure Math., 2009: 151-158 (2009) DOI: 10.2969/aspm/05310151

Abstract

We study the two-sector economy with sector-specific externality following Benhabib, Nishimura and Venditti [2002]. We focus on the external effect of capital-labor ratio and provide the characterization of equilibrium paths in the case Benhabib, Nishimura and Venditti did not discuss explicitly.