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On Capital Dependent Dynamics of Knowledge

Marek Szydlowski·Adam Krawiec
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Abstract

We investigate the dynamics of growth models in terms of dynamical system theory. We analyse some forms of knowledge and its influence on economic growth. We assume that the rate of change of knowledge depends on both the rate of change of physical and human capital. First, we study model with constant savings. The model with optimised behaviour of households is also considered. We show that the model where the rate of change of knowledge depends only on the rate of change of physical capital can be reduced to the form of the two-dimensional autonomous dynamical system. All possible evolutional paths and the stability of solutions in the phase space are discussed in details. We obtain that the rate of growth of capital, consumption and output are greater in the case of capital dependent rate of change of knowledge.

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Marek Szydlowski, Adam Krawiec. 2006-08-20. On Capital Dependent Dynamics of Knowledge. https://arxiv.org/abs/physics/0608197

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