Knife-edge conditions in the modeling of long-run growth regularities

摘要: Balanced (exponential) growth cannot be generalized to a concept which would not require knife-edge conditions imposed on dynamic models. Already the assumption that solution dynamical system (i.e. time path of an economy) satisfies given functional regularity (e.g. quasi-arithmetic, logistic, etc.) imposes at least one considered model. Furthermore, it is always possible find divergent and qualitative changes in behavior model – strong enough invalidate its long-run predictions if certain parameter infinitesimally manipulated.