Closed-Form Solution for the Solow Model with Constant Migration

• Autor(a) principal: JUCHEM NETO,J.P.
• Data de Publicação: 2015
• Outros Autores: CLAEYSSEN,J.C.R., RITELLI,D., SCARPELLO,G. MINGARI
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: TEMA (Sociedade Brasileira de Matemática Aplicada e Computacional. Online)
• Texto Completo: http://old.scielo.br/scielo.php?script=sci_arttext&pid=S2179-84512015000200147
• topic: Solow growth model; migration; hypergeometric function

In this work we deal with the Solow economic growth model, when the labor force is ruled by the Malthusian law added by a constant migration rate. Considering a Cobb-Douglas production function, we prove some stability issues and find a closed-form solution for the emigration case, involving Gauss' Hypergeometric functions. In addition, we prove that, depending on the value of the emigration rate, the economy could collapse, stabilize at a constant level, or grow more slowly than the standard Solow model. Immigration also can be analyzed by the model if the Malthusian manpower is declining.