Nonlinear economic growth dynamics in the context of a military arms race
DOI:
https://doi.org/10.24193/subbmath.2020.2.12Keywords:
Solow-Swan model, Arms race, Asymptotic behaviorAbstract
In the present contribution, we propose and analyze a dynamical economic growth model for two rival countries that engage an arms race. Under natural assumptions, we prove that global solutions exist and discuss their asymptotic long-time behavior. The results of our stability analysis support the recurring hypothesis in Cold War political science that engaging in an arms race with a technologically superior and hence faster growing adversary has damaging economic consequences. Numerical findings illustrate and support our claims.Downloads
Published
2020-06-02
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