In search of a new economic model determined by logistic growth

摘要

In this paper we extend the work by Ryuzo Sato devoted to the development ofeconomic growth models within the framework of the Lie group theory. We proposea new growth model based on the assumption of logistic growth in factors. Thenwe employ this growth model to derive new production functions and introduce anew notion of wage share. In the process it is shown that the new productionfunctions compare reasonably well against relevant economic data. Thecorresponding problem of maximization of profit under conditions of perfectcompetition is solved with the aid of one of these functions. In addition, itis explained in rigorous mathematical terms why Bowley's law no longer holdstrue in post-1960 data.