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Endogenous growth and economic fluctuations

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The specific contribution of endogenous growth models to RBC literature remains unclear since, although the implication of assuming endogenous growth for explaining aggregate fluctuations has already been considered for instance by Gomme (1993) and Ozlu (1996), these papers introduce additional shocks in order to reproduce some labor market fluctuations. In this paper we attempt to identify the success of some endogenous growth models in mimicking some key aspects of labor market behaviour while retaining a single shock. This paper shows that the introduction of an activity competing with the final output production activity may help to explain some labor market features, there being no need to introduce any additional source of uncertainty as is usually done in standard growth models. (Copyright: Fundación Empresa Pública)

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Bibliographic Info

Article provided by Fundación SEPI in its journal Investigaciones Economicas.

Volume (Year): 25 (2001)
Issue (Month): 3 (September)
Pages: 515-541

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Handle: RePEc:iec:inveco:v:25:y:2001:i:3:p:515-541

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Related research

Keywords: real business cycles; aggregate fluctuations; endogenous growth; propagation mechanism;

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References

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  19. Ladron-de-Guevara, Antonio & Ortigueira, Salvador & Santos, Manuel S., 1997. "Equilibrium dynamics in two-sector models of endogenous growth," Journal of Economic Dynamics and Control, Elsevier, vol. 21(1), pages 115-143, January.
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