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Abstract and Applied Analysis
Volume 2013 (2013), Article ID 836537, 6 pages
http://dx.doi.org/10.1155/2013/836537
Research Article

Nonlinear Dynamics in the Solow Model with Bounded Population Growth and Time-to-Build Technology

1Department of Management, Polytechnic University of Marche, Piazza Martelli 8, 60121 Ancona, Italy
2Department of Economics and Management, University of Pisa, Via Cosimo Ridolfi 10, 56124 Pisa, Italy

Received 5 September 2013; Accepted 15 October 2013

Academic Editor: Carlo Bianca

Copyright © 2013 Luca Guerrini and Mauro Sodini. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

The aim of this paper is to show that the Solow model equipped by realistic assumptions on technology and population dynamics is capable of explaining a well-known stylised fact of growth, that is, the presence of persistent oscillations of demoeconomic variables. In particular, our analysis shows that the coexistence of delays between (i) new investment and production and (ii) the birth date and the recruitment in the labour force is a source of cyclical behaviour in capital accumulation.