Neoclassical production theory and growth with unemployment: The stability issue revisited
A common belief in economic growth theory is that the instability of the balanced growth path of models based on a non-neoclassical production theory, such as the Harrod-Domar or Goodwin-type models, may be removed by introducing neoclassical technology and substitutability between factors. This does not need to be true. As shown in this paper, Solow-type models with sluggishly adjusting, non-market-clearing, real wages and endogenous fertility may suffer instability. Not only: instability may be favoured by too strong a degree of neoclassical substitution in the economy.
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.:
- Luciano Fanti & Piero Manfredi, 2003. "The Solow¡¯S Model With Endogenous Population: A Neoclassical Growth Cycle Model," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 28(2), pages 103-115, December.
- Steven Fazzari & R. Glenn Hubbard & Bruce C. Petersen, 1987.
"Financing Constraints and Corporate Investment,"
NBER Working Papers
2387, National Bureau of Economic Research, Inc.
- R. M. Solow & J. Tobin & C. C. von Weizsäcker & M. Yaari, 1966. "Neoclassical Growth with Fixed Factor Proportions," Review of Economic Studies, Oxford University Press, vol. 33(2), pages 79-115.
- Luciano Fanati & Piero Manfredi, 2003. "Population, Unemployment and Economic Growth Cycles: A Further Explanatory Perspective," Metroeconomica, Wiley Blackwell, vol. 54(2-3), pages 179-207, 05.
- Piero Manfredi & Luciano Fanti, 2006. "Demography In Macroeconomic Models: When Labour Supply Matters For Economic Cycles," Metroeconomica, Wiley Blackwell, vol. 57(4), pages 536-563, November.
- Manfredi, Piero & Fanti, Luciano, 2006. "The complex effects of demographic heterogeneity on the interaction between the economy and population," Structural Change and Economic Dynamics, Elsevier, vol. 17(2), pages 148-173, June.
- Robert J. Barro, 2013.
"Inflation and Economic Growth,"
Annals of Economics and Finance,
Society for AEF, vol. 14(1), pages 121-144, May.
- Galor, Oded & Weil, David, 1995.
"The Gender Gap, Fertility and Growth,"
CEPR Discussion Papers
1157, C.E.P.R. Discussion Papers.
- Momota, Akira & Futagami, Koichi, 2000. "Demographic transition pattern in a small country," Economics Letters, Elsevier, vol. 67(2), pages 231-237, May.
- Jones Charles I., 2001.
"Was an Industrial Revolution Inevitable? Economic Growth Over the Very Long Run,"
The B.E. Journal of Macroeconomics,
De Gruyter, vol. 1(2), pages 1-45, August.
- Charles I. Jones, 1999. "Was an Industrial Revolution Inevitable? Economic Growth Over the Very Long Run," NBER Working Papers 7375, National Bureau of Economic Research, Inc.
- Charles I. Jones, . "Was an Industrial Revolution Inevitable? Economic Growth Over the Very Long Run," Working Papers 99008, Stanford University, Department of Economics.
- Adriaan S. Kalwij, 2000. "The effects of female employment status on the presence and number of children," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(2), pages 221-239.
- Michaela Kreyenfeld, 2005. "Economic uncertainty and fertility postponement: evidence from German panel data," MPIDR Working Papers WP-2005-034, Max Planck Institute for Demographic Research, Rostock, Germany.
- Fanti, Luciano & Manfredi, Piero, 2007. "Neoclassical labour market dynamics, chaos and the real wage Phillips curve," Journal of Economic Behavior & Organization, Elsevier, vol. 62(3), pages 470-483, March.
- Solow, Robert M., 2000. "Growth Theory: An Exposition," OUP Catalogue, Oxford University Press, edition 2, number 9780195109030, December.
- Giuseppe Bertola & Pietro Garibaldi, 2003. "The Structure and History of Italian Unemployment," CESifo Working Paper Series 907, CESifo Group Munich.
- Gary S. Becker, 1960. "An Economic Analysis of Fertility," NBER Chapters, in: Demographic and Economic Change in Developed Countries, pages 209-240 National Bureau of Economic Research, Inc.
- Pedro Mira & Namkee Ahn, 2001. "Job bust, baby bust?: Evidence from Spain," Journal of Population Economics, Springer;European Society for Population Economics, vol. 14(3), pages 505-521.
When requesting a correction, please mention this item's handle: RePEc:eee:streco:v:20:y:2009:i:2:p:126-135. 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: (Shamier, Wendy)
If references are entirely missing, you can add them using this form.