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The Effect of Business Cycles On Growth

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Abstract

In contrast to recent "neo-Schumpeterian" models, which argue that business cycles are good for growth, the paper develops a "neo-Keynesian" model, characterized by monopolistically competitive firms which must set prices and produce output in advance of the realization of (stochastic) monetary velocity.

Suggested Citation

  • Nicholas Rowe & Dehjia, V-H, 1996. "The Effect of Business Cycles On Growth," Carleton Economic Papers 96-02, Carleton University, Department of Economics, revised Jul 1998.
  • Handle: RePEc:car:carecp:96-02
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    Cited by:

    1. Dimitrios Bakas & Georgios Chortareas & Georgios Magkonis, 2019. "Volatility and growth: a not so straightforward relationship," Oxford Economic Papers, Oxford University Press, vol. 71(4), pages 874-907.

    More about this item

    Keywords

    BUSINESS CYCLES; GROWTH RATE;

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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