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

Figure 3

Map 𝐹 and set 𝑆 for 𝛽=0.9, 𝛼=1, 𝑛=0.5, 𝑠_𝑤=0.1 and 𝑠_𝑟=0.7. (a) 𝑝=6 and 𝐹_𝑆 is strictly decreasing; (b) 𝑝=8 and 𝐹_𝑆 is unimodal (the maximum point belongs to 𝑆); (c) 𝑝=12 and 𝐹_𝑆 is bimodal (both 𝑘_𝑀 and 𝑘_𝑚 belong to 𝑆).

(a)

(b)

(c)