Endogenous growth cycles
(2004)
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- Abstract
- Current explanations why a growing economy necessarily goes through periods of high and low growth predict countercyclical R&D investment. As this is very controversial from an empirical perspective, a stochastic Poisson model of endogenous growth cycles is presented where the determinants of the cyclical behaviour of R&D investment are analytically studied. Providing an explicit expression for the expected length of a cycle shows that high frequency fluctuations can indeed be understood by this approach. It is also shown how small technological improvements translate into large aggregate fluctuations.
- Affiliations
Citations
Waelde, K. (2004). Endogenous growth cycles (ECON Discussion Papers 2004/23).