This paper demonstrates how the short-run static stability conditions of the two-sector growth model can be derived by converting the problem into a two-person, two-good exchange model. It is shown that the only necessary and sufficient condition for short-run stability is the Marshall-Lerner condition, and that the Drandakis (sufficient) condition follows easily from the former.
MLA
Chacholiades, Miltiades. “Short-Run Equilibrium and Stability in the Two-Sector Growth Model.” Econometrica, vol. 42, .no 6, Econometric Society, 1974, pp. 1081-1092, https://www.jstor.org/stable/1914219
Chicago
Chacholiades, Miltiades. “Short-Run Equilibrium and Stability in the Two-Sector Growth Model.” Econometrica, 42, .no 6, (Econometric Society: 1974), 1081-1092. https://www.jstor.org/stable/1914219
APA
Chacholiades, M. (1974). Short-Run Equilibrium and Stability in the Two-Sector Growth Model. Econometrica, 42(6), 1081-1092. https://www.jstor.org/stable/1914219
The Executive Committee of the Econometric Society has approved an increase in the submission fees for papers in Econometrica. Starting January 1, 2025, the fee for new submissions to Econometrica will be US$125 for regular members and US$50 for student members.
By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device. Cookies are used to optimize your experience and anonymously analyze website performance and traffic.