A Poisson-Ramsey growth model: Creative destruction, endogenous cycles and growth
Creative destruction due to new technologies causes both long-run growth and short-run business fluctuations. The creative part of new technologies pushes the economy on a higher productivity level while the destructive part implies partial obsolescence of old production units. Obsolescence due to each new technology induces an adjustment period during which growth rates are initially high but gradually fall. At some endogenously determined point, research for the next technology starts. Once the new technology is discovered, the next cycle starts. This is shown in a continuous time Ramsey growth model where savings can be used for financing deterministic capital accumulation and stochastic Poisson driven R&D for new technologies.
Year of publication: |
1999
|
---|---|
Authors: | Wälde, Klaus |
Institutions: | Institut für Wirtschafts- und Sozialstatistik, Universität Dortmund |
Saved in:
freely available
Saved in favorites
Similar items by person
-
International competition, growth and welfare
Tang, Paul J. G., (1996)
-
The empirics of trade and growth: where are the policy recommendations?
Wälde, Klaus, (2000)
-
Does trade cause growth? : A policy perspective
Wälde, Klaus, (2000)
- More ...