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 behavior.Abstract
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 our claims.
Mathematics Subject Classification (2010): 91B62, 91F10.
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