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UNIFYING TIME-TO-BUILD THEORY

Published online by Cambridge University Press:  04 June 2013

Mauro Bambi*
Affiliation:
University of York
Franco Gori
Affiliation:
Universita' di Firenze
*
Address correspondence to: Mauro Bambi, Economics Department, University of York, York, UK; e-mail: mauro.bambi@york.ac.uk.

Abstract

Discrete-time and continuous-time models with time to build do not possess the same dimension. In this paper we address the dimensionality issue by revising the way time to build is traditionally measured when transforming the economic dynamics from discrete to continuous time. We propose our new procedure as an alternative approach which allows for a unifying theory of the two classes of economic growth models. Interestingly enough, discrete-time models admit a change in stability for a value of the time-to-build parameter where their continuous counterpart admits an Hopf bifurcation.

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Articles
Copyright
Copyright © Cambridge University Press 2013 

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