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Discrete Dynamics in Nature and Society
Volume 2012 (2012), Article ID 536570, 22 pages
http://dx.doi.org/10.1155/2012/536570
Research Article

Local and Global Dynamics in a Discrete Time Growth Model with Nonconcave Production Function

1Dipartimento di Management, Università Politecnica delle Marche, 60121 Ancona, Italy
2Dipartimento di Economia e Diritto, Università di Macerata, 62100 Macerata, Italy

Received 18 July 2012; Accepted 7 November 2012

Academic Editor: Juan J. Nieto

Copyright © 2012 Serena Brianzoni et al. 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

We study the dynamics shown by the discrete time neoclassical one-sector growth model with differential savings while assuming a nonconcave production function. We prove that complex features exhibited are related both to the structure of the coexixting attractors and to their basins. We also show that complexity emerges if the elasticity of substitution between production factors is low enough and shareholders save more than workers, confirming the results obtained while considering concave production functions.