Delay Two-Sector Growth Model with Constant Technological Coefficients (Time-delay Systems and Mathematical Sciences : Toward New Developments in Theory and Applications)

Abstract

A Leontief two-sector growth model is examined with production and depreciation delays, where the growth rate of labor is exogenously given. After the equilibrium states are characterized, the two-delay dynamic system for labor is formulated. The dynamic analysis is given in three cases: the no delay, one delay and two delays are examined in detail. The presence of a positive eigenvalue makes the systems unstable in the classical sence. The dynamic system is called stable if the growth rate of labor as time variable converges to the exogenously given growth rate. Conditions are given for the stability of the systems in this sense. The analysis is based on complete characterizations of the locations of all eigenvalues. The theoretical results are demonstrated with numerical studies.