Growth and Output Fluctuations
This paper sheds new light on the interaction between growth and output fluctuations. Our approach is different from the literature in that we analyse how endogenous fluctuations are affected by a faster productivity growth in the long run. Main results: (i) expansion (or contraction) occurs more (or less) frequently, (ii) expansion becomes milder but contraction severer, (iii) the amplitude of fluctuations becomes larger, (iv) the variance of output changes ambiguously, indicating a non-monotonic relationship. We also investigate how an R&D subsidy alters the nature of output fluctuations and re-examine its effect on technological change in the presence of recurrent cycles. The result questions the widely-accepted theoretical implication that a research subsidy unambiguously promotes technological progress. Copyright 2000 by Scottish Economic Society.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 47 (2000)
Issue (Month): 2 (May)
|Contact details of provider:|| Web page: http://www.blackwellpublishing.com/journal.asp?ref=0036-9292|
More information through EDIRC
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=0036-9292|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ramey, Garey & Ramey, Valerie A, 1995.
"Cross-Country Evidence on the Link between Volatility and Growth,"
American Economic Review,
American Economic Association, vol. 85(5), pages 1138-51, December.
- Garey Ramey & Valerie A. Ramey, 1994. "Cross-Country Evidence on the Link Between Volatility and Growth," NBER Working Papers 4959, National Bureau of Economic Research, Inc.
- Andolfatto, D. & MacDonald, G.M., 1995.
"Technological Innovation, Diffusion, and Business Cycle Dynamics,"
9503, University of Waterloo, Department of Economics.
- Saint-Paul, Gilles, 1997.
"Business Cycles and Long-run Growth,"
CEPR Discussion Papers
1642, C.E.P.R. Discussion Papers.
- David Andolfatto & Glenn M. MacDonald, 1998.
"Technology Diffusion and Aggregate Dynamics,"
Cahiers de recherche CREFE / CREFE Working Papers
58, CREFE, Université du Québec à Montréal.
- Philippe Aghion & Peter Howitt, 1990.
"A Model of Growth Through Creative Destruction,"
NBER Working Papers
3223, National Bureau of Economic Research, Inc.
- Aghion, P. & Howitt, P., 1990. "A Model Of Growth Through Creative Destruction," DELTA Working Papers 90-12, DELTA (Ecole normale supérieure).
- Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," UWO Department of Economics Working Papers 8904, University of Western Ontario, Department of Economics.
- Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," Working papers 527, Massachusetts Institute of Technology (MIT), Department of Economics.
- Baumol, William J. & Benhabib, Jess, 1987.
"Chaos: Significance, Mechanism, and Economic Applications,"
87-16, C.V. Starr Center for Applied Economics, New York University.
- Baumol, William J & Benhabib, Jess, 1989. "Chaos: Significance, Mechanism, and Economic Applications," Journal of Economic Perspectives, American Economic Association, vol. 3(1), pages 77-105, Winter.
- Sichel, D.E., 1988.
"Business Cycle Asymmetry: A Deeper Look,"
85, Princeton, Department of Economics - Financial Research Center.
- Jeffrey R. Campbell, 1997.
"Entry, Exit, Embodied Technology, and Business Cycles,"
NBER Working Papers
5955, National Bureau of Economic Research, Inc.
- Jeffrey Campbell, 1998. "Entry, Exit, Embodied Technology, and Business Cycles," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(2), pages 371-408, April.
- Elhanan Helpman & Manuel Trajtenberg, 1996.
"Diffusion of General Purpose Technologies,"
NBER Working Papers
5773, National Bureau of Economic Research, Inc.
- Caballero, R.J. & Hammour, M.L., 1991.
"The Cleansing Effect of Recessions,"
1991_59, Columbia University, Department of Economics.
- Corriveau, Louis, 1994. "Entrepreneurs, Growth and Cycles," Economica, London School of Economics and Political Science, vol. 61(241), pages 1-15, February.
- Chol-Won Li, .
"Science, Diminishing Returns and Long Waves,"
9715, Business School - Economics, University of Glasgow.
- Kontolemis, Zenon G, 1997. "Does Growth Vary over the Business Cycle? Some Evidence from the G7 Countries," Economica, London School of Economics and Political Science, vol. 64(255), pages 441-60, August.
- Romer, Paul M, 1990.
"Endogenous Technological Change,"
Journal of Political Economy,
University of Chicago Press, vol. 98(5), pages S71-102, October.
- Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-96, September.
- C Michelacci, 1997. "Long-Run Growth and Business Cycle Volatility," CEP Discussion Papers dp0351, Centre for Economic Performance, LSE.
- J. Bradford De Long & Lawrence H. Summers, . "How Does Macroeconomic Policy Matter?," J. Bradford De Long's Working Papers _130, University of California at Berkeley, Economics Department.
- Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
- J Malley & V A Muscatelli., .
"Business Cycles and Productivity Growth: Are Temporary Downturns Productive or Wasteful?,"
9605, Business School - Economics, University of Glasgow.
- Malley, Jim & Muscatelli, V. Anton, 1999. "Business cycles and productivity growth: Are temporary downturns productive or wasteful?," Research in Economics, Elsevier, vol. 53(4), pages 337-364, December.
- repec:fth:simfra:95-08 is not listed on IDEAS
- Stadler, George W, 1990. "Business Cycle Models with Endogenous Technology," American Economic Review, American Economic Association, vol. 80(4), pages 763-78, September.
- Van Ewijk, Casper, 1997. "Entry and Exit, Cycles, and Productivity Growth," Oxford Economic Papers, Oxford University Press, vol. 49(2), pages 167-87, April.
- Aghion, Philippe & Saint-Paul, Gilles, 1991.
"On the Virtue of Bad Times: An Analysis of the Interaction between Economic Fluctuations and Productivity Growth,"
CEPR Discussion Papers
578, C.E.P.R. Discussion Papers.
- Aghion, P. & Saint-Paul, G., 1991. "On The Virtue of Bad Times: An Analysis of the Interaction Between Economic Fluctuations and Productivity Growth," DELTA Working Papers 91-23, DELTA (Ecole normale supérieure).
- Amable, Bruno, 1995. "Endogenous growth and cycles through radical and incremental innovation," CEPREMAP Working Papers (Couverture Orange) 9504, CEPREMAP.
When requesting a correction, please mention this item's handle: RePEc:bla:scotjp:v:47:y:2000:i:2:p:95-113. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.