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The Scientific World Journal
Volume 2014, Article ID 908629, 8 pages
http://dx.doi.org/10.1155/2014/908629
Research Article

Dynamic Properties of the Solow Model with Bounded Technological Progress and Time-to-Build Technology

1Department of Management, Polytechnic University of Marche, 60121 Ancona, Italy
2Department of Economics and Management, University of Pisa, 56124 Pisa, Italy

Received 30 August 2013; Accepted 12 February 2014; Published 19 March 2014

Academic Editors: F. Borondo and A. Favini

Copyright © 2014 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

We introduce a time-to-build technology in a Solow model with bounded technological progress. Our analysis shows that the system may be asymptotically stable, or it can produce stability switches and Hopf bifurcations when time delay varies. The direction and the stability criteria of the bifurcating periodic solutions are obtained by the normal form theory and the center manifold theorem. Numerical simulations confirms the theoretical results.