The one-sector neoclassical growth model (Solow, 1956,RES) can generate only simple dynamics. The dynamic properties of … the Solow model follow from the saving behaviour and the neoclassical technology. As shown by Day (1982, AER), when … attached to factor shares, wages and profits, and a slightly more general technology than the neoclassical one. Their …

Economic fluctuations are much stronger in developing countries than in the United States. Yet, while a large … number of low--income countries. Our first main result is that the welfare cost of output fluctuations per se is far from … result is that, in many poor countries, that cost may in fact exceed the welfare cost of significantly lower growth. …

This paper discusses the emergence of endogenous redistributive cycles in a stochastic growth model with incomplete … triggering redistributive cycles which then give rise to a nonlinear, cyclical pattern of growth and savings rates over time …