We introduce an easy way of analyzing the transitional dynamics of the Uzawa-Lucas endogenous growth model. We use the value function approach to solve both the social planner?s optimization problem and the representative agent?s optimization problem in the decentralized economy. The complexity...

This paper extends the class of AK models with an explicit solution to the case where there are two capital goods in the model. this extension holds, even if an external effect in the use of human capital in goods production ia assumed.

This paper extends the class of stochastic AK growth models with a closed-formsolution 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...

An elementary school student's relative age is defined as the child's age relative to the age of its classmates. To what extent relative age gaps influence academic outcomes is an ongoing debate in educational economics and related fields. Our study analyzes the existence, magnitude, and...

We introduce a simple method for computing value functions. The method is demonstrated by solving for transitional dynamics in the Uzawa and Lucas endogenous growth model. We use the value function approach to solve both the social planner’s optimization problem in the centralized economy and...