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Stability Analysis of Two-Sectors Stochastic Economic Growth Model

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Abstract

In the paper, we investigate the stability of a two-sector economic growth model under stochastic case. A two-dimensional stochastic differential system is deduced by Ito’s formula, by using Lyapunov function methods, whether the growth rates of physical capital and human capital are exponentially stable or unstable depends on the values for parameters. Finally, we also illustrate the results with two examples.

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Authors and Affiliations

  1. Department of Mathematics, Huazhong University of Science and Technology, Wuhan, 430074, China

    Shaobo Zhou & Shigeng Hu

Authors
  1. Shaobo Zhou
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  2. Shigeng Hu
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Correspondence to Shaobo Zhou.

Additional information

The research is supported by the National Natural Science Foundation of China under Grant No. 70671047.

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Zhou, S., Hu, S. Stability Analysis of Two-Sectors Stochastic Economic Growth Model. Jrl Syst Sci & Complex 20, 521–528 (2007). https://doi.org/10.1007/s11424-007-9049-7

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  • DOI: https://doi.org/10.1007/s11424-007-9049-7

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