In medieval times, most people identified with religious values and aggregate income and productivity grew at glacier … speed. In the 20th century, religion played a much lesser role in daily life and income and productivity grew at high and … worldly pleasures and aggregate productivity takes off. An extension of the basic model investigates the Protestant …

. Productivity adjustments stabilise employment and the labour share in the long run: technological change allows firms to replenish … reduction have no long-term effect on growth, distribution and inflation in the model. The effects on the level of capital stock … inflation temporarily. The model provides possible explanations as to the causes of several current economic phenomena such as …

direct investment, imports of productivity-enhancing technology - are petering out, and are yet to be substituted. We propose …