Jian Li ^a, Yao Lu ^b 

Author information

a School of Economics, Nanjing University, Nanjing 210093, China

b School of Economics, Nanjing University, Nanjing 210093, China

E-mail: lijiansid@nju.edu.cn (Jian Li)

Abstract

This paper relaxes two assumptions on the traditional augmented Solow model: strict concavity of production functions and dual capital goods. It generalizes traditional conclusions of the Solow model by demonstrating that neoclassical properties of a production function are sufficient for the existence and global stability of the steady state in the augmented Solow model with multiple capital goods. Moreover, we prove necessity of essentiality of inputs for a neoclassical production function and generalize the golden rule of capital accumulation.

Keywords

multiple capital goods, augmented Solow model, essentiality of inputs, steady state, strict concavity

Cite this article

Jian Li, Yao Lu. Existence and Stability of Steady State in an Augmented Solow Model with Multiple Capital Goods. Front. Econ. China, 2018, 13(4): 685‒702 https://doi.org/10.3868/s060-007-018-0031-4