Roman Smirnov | Department of Mathematics and Statistics, Dalhousie University
In search of a new economic model determined by logistic growth
We propose a new growth model based on the assumption of logistic growth in factors. The model is an extension of the work by Sato devoted to the development of economic growth models within the framework of the Lie group theory. It is employed to derive new production functions and introduce a new notion of wage share.
We will discuss one of these production functions in relation to the "S-shaped" production function that has been recently introduced within a similar context and extensively studied in works by Anita, Capasso, Engbers, Kunze, La Torre and others.
We will also show that the new functions compare reasonably well against relevant economic data. In addition, we will explain in reasonably rigorous mathematical terms why Bowley’s law no longer holds true in post-1960 data.
Joint work with Kunpeng Wang