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
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