This paper explores relationships among economic growth, unemployment, and business cycles by constructing a model, which views the process of creative destruction as a major source of business cycles, as well as of economic growth. The main results are as follows: first, the long-run growth...

This paper presents an endogenous growth model, in which entry, exit, and growth are endogenously determined through the rational behavior of agents, to investigate the effects of growth-enhancing policies on the exit rate of firms, and on the unemployment rate as well. Unlike standard...

This study augments a second-generation Schumpeterian growth model to employ human capital explicitly. We clarify the general-equilibrium interactions of subsidy policies to R&D and human capital accumulation in a unified framework. Despite a standard intuition that subsidizing these...

This paper combines three prototype endogenous growth models, the models with human capital accumulation introduced by Uzawa [1965] and Lucas [1988], variety expansion by Romer [1990], and quality improvements by Aghion and Howitt [1992], in order to investigate how these three engines of growth...

This paper develops a tractable endogenous growth model to investigate the interrelationship between exit of firms and economic growth by integrating Schumpeterian growth and stochastic dynamic industry models. The results are in stark contrast with that of standard Schumpeterian growth theory:...

In this study, we discuss a connection between heterogeneity of agents and indeterminacy of equilibria in a standard money-in-the-utility function model. Contrary to ealier studies, which mainly concern indeterminacy in connection with monetary policy or preferences of a single agent, we...

This study augments a second-generation Schumpeterian growth model to employ human capital explicitly. We clarify the general-equilibrium interactions of subsidy policies to Ramp;D and human capital accumulation in a unified framework. Despite a standard intuition that subsidizing these...