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balanced growth path


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1 اقتصاد:: مسیر رشد متعادل

Moreover, by making production scale with aggregate quality, we can ensure that output grows at the same rate as productivity, which is necessary for the existence of a balanced growth path equilibrium. Later on, we specialize the equilibrium to a balanced-growth path (BGP) in which all aggregates grow at a constant and positive rate, g. BGP Equilibrium Characterization A Balanced Growth Path equilibrium is defined as an equilibrium allocation in which output all aggregate variables grow at a constant rate, denoted by g > 0. (11) that, if a BGP exists where output grows at the rate g, then . Moreover, we can note from Equation (13) that p� is time-invariant, and therefore flow operating profits before advertising costs can be written as pjt = pq�jt in BGP, where is a constant.

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