全部 标题 作者
关键词 摘要

OALib Journal期刊
ISSN: 2333-9721
费用:99美元

查看量下载量

A Kind of Neither Keynesian Nor Neoclassical Model (6): The Ending State of Economic Growth

DOI: 10.4236/oalib.1103589, PP. 1-19

Subject Areas: Economics

Keywords: Cobb-Douglas Function, Dynamic Optimization, Exogenous Growth, Endogenous Growth

Full-Text   Cite this paper   Add to My Lib

Abstract

In traditional macroeconomics argues that the decision and fluctuation of output level is short-term theory, and the growth of output is a long-term theory. The former is determined by the demand; the latter is determined by the production. No one has questioned why the former is determined by production and the latter is determined by demand. This paper argues that the factors that affect the output are the same in the short and long term, but there is no need to analyze the problem of fluctuation in the long term. Based on the analysis of the growth path in our previous paper, this paper first examines whether our model is applicable to the Pontryagin maximum principle, and then analyzes the difference of the Cobb-Douglas function in the exogenous growth model and the endogenous growth model. Reveal the special role of parameter A in Cobb-Douglas function: as long as A is considered as output-related variables, there is no substantial difference between the so-called exogenous model and endogenous mode. Finally, according to the trend of the growth path and the nature of A, the paper derives the final state of Cobb-Douglas function.

Cite this paper

Zhan, M. and Zhan, Z. (2017). A Kind of Neither Keynesian Nor Neoclassical Model (6): The Ending State of Economic Growth. Open Access Library Journal, 4, e3589. doi: http://dx.doi.org/10.4236/oalib.1103589.

References

[1]  Lucas Jr., R.E. (1988) On the Mechanics of Economic Development. Journal of Monetary Economics, 22, 3-42.
[2]  Cass, D. (1965) Optimum Growth in an Aggregate Model of Capital Accumulation. The Review of Economic Studies, 32, 233-240. https://doi.org/10.2307/2295827
[3]  Zhan, M.A. and Zhan, Z. (2016) A Kind of Neither Keynesian nor Neoclassical Model (1): The Fundamental Equation. Open Access Library Journal, 3, e3207. https://doi.org/10.4236/oalib.1103207
[4]  Romer, P.M. (1986) Increasing Returns and Long-Run Growth. Journal of Political Economy, 94, 1002-1037.
[5]  Barro, R.J. (1990) Government Spending in a Simple Model of Endogenous Growth. Journal of Political Economy, 98, 103-125. https://doi.org/10.1086/261726
[6]  Rebelo, S.T. (1991) Long-Run Policy Analysis and Long-Run Growth. Journal of Political Economy, 99, 500-521. https://doi.org/10.1086/261764
[7]  Arrow, K.J. (1962) The Economic Implications of Learning by Doing. The Review of Economic Studies, 29, 155-173. https://doi.org/10.2307/2295952
[8]  Lucas Jr., R.E. (1990) Why Doesn’t Capital Flow From Rich to Poor Countries, American Economic Review (Papers and Proceedings), 80, 92-96.
[9]  Zhan, M.A. and Zhan Z. (2016) A Kind of Neither Keynesian nor Neoclassical Model (2): The Business Cycle. Open Access Library Journal, 3, e3215. https://doi.org/10.4236/oalib.1103215
[10]  Gollop, F.M., Fraumeni, B.M. and Jorgenson, D.W. (1987) Productivity and U.S. Economic Growth. Harvard University Press, Cambridge, MA. (Reprinted, 1999)
[11]  Zhan, M.A. and Zhan, Z. (2017) A Kind of Neither Keynesian nor Neoclassical Model (5): The Path of Economic Growth. Open Access Library Journal, 4, e3525. https://doi.org/10.4236/oalib.1103525
[12]  Harrod, R.F. (1939) An Essay in Dynamic Theory. The Economic Journal, 49, 14-33. https://doi.org/10.2307/2225181
[13]  Domar, E.D. (1946) Capital Expansion, Rate of Growth, and Employment. Econometrica, 14, 137-147. https://doi.org/10.2307/1905364
[14]  Solow, R.M. (1956) A Contribution to the Theory of Economic Growth. The Quarterly Journal of Economics, 70, 65-94. https://doi.org/10.2307/1884513
[15]  Smith, A. (1776) An Inquiry into the Nature and Causes of the Wealth of Nations. 5th Edition, Methuen Co. Ltd., London.
[16]  Zhan, M.A. and Zhan, Z. (2017) A Kind of Neither Keynesian nor Neoclassical Model (3): The Inflation Equation. Open Access Library Journal, 4, e3333. https://doi.org/10.4236/oalib.1103333
[17]  Zhan, M.A. and Zhan, Z. (2017) A Kind of Neither Keynesian nor Neoclassical Model (4): The Nature of Philips Curve. Open Access Library Journal, 4, e3388. https://doi.org/10.4236/oalib.1103388

Full-Text


comments powered by Disqus

Contact Us

service@oalib.com

QQ:3279437679

WhatsApp +8615387084133

WeChat 1538708413