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Growth And Cycles, In The Mode Of Marx And Schumpeter

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  • Michele Boldrin

Abstract

I propose a theory of endogenous growth and cycles under competitive conditions. Firms choose how many workers to hire, how much to invest, and which technologies to use. New capacity, embodying labor‐saving technologies, is costlier than old one but allows for a lower wage bill. The interaction between labor‐saving innovations and changes in the relative price of labor is the source of growth cycles.

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  • Michele Boldrin, 2009. "Growth And Cycles, In The Mode Of Marx And Schumpeter," Scottish Journal of Political Economy, Scottish Economic Society, vol. 56(4), pages 415-442, September.
    • Handle: RePEc:bla:scotjp:v:56:y:2009:i:4:p:415-442
    DOI: 10.1111/j.1467-9485.2009.00492.x
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    References listed on IDEAS

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    Cited by:

    1. Hernando Zuleta & Daniel Gamboa, 2019. "Factor reallocation and growth: what if there are labor saving innovations?," Documentos CEDE 17199, Universidad de los Andes, Facultad de Economía, CEDE.

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