1. Complex dynamics of industrial transferring in a credit-constrained economy
- Author
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Hongxi Lin, Honggang Li, Jiefei Yu, and Tongkui Yu
- Subjects
Complex dynamics ,Macroeconomic model ,Industrial upgrading ,Feedback effect ,Net worth ,Credit market friction ,Economics ,Chaos ,Physics and Astronomy(all) ,Industrial trap ,Productivity ,Industrial organization - Abstract
We present a simple industrial transferring macroeconomic model where credit constrained agents may invest projects of different industries. The feedback effect between agent’s net worth and credit composition among industries with different productivity gives rise to complex aggregation dynamics including unique equilibrium, multiple-equilibrium, cycle and chaos. These dynamics replicate many industry transferring patterns and provide economic implications for industry policy.
- Published
- 2010
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