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Endogenous Cycles and Growth with Indivisible Technological Developments

Author

Listed:
  • Scott Freeman

    (University of Texas, Austin)

  • Dong-Pyo Hong

    (Korea Information Society Development Institute)

  • Dan Peled

    (Technion - Israel Institute of Technology)

Abstract

When large, discrete technological improvements require the accumulation of research or infrastructural investment over time, growth paths display cyclical patterns even in the absence of any shocks. Particularly interesting equilibrium features of these cycles include declines in output and asymmetries in the cyclic patterns displayed during expansions and recessions. (Copyright: Elsevier)

Suggested Citation

  • Scott Freeman & Dong-Pyo Hong & Dan Peled, 1999. "Endogenous Cycles and Growth with Indivisible Technological Developments," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 2(2), pages 402-432, April.
  • Handle: RePEc:red:issued:v:2:y:1999:i:2:p:402-432
    DOI: 10.1006/redy.1999.0058
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    References listed on IDEAS

    as
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    3. Balke, Nathan S & Wynne, Mark A, 1995. "Recessions and Recoveries in Real Business Cycle Models," Economic Inquiry, Western Economic Association International, vol. 33(4), pages 640-663, October.
    4. Jovanovic, Boyan & Rob, Rafael, 1990. "Long Waves and Short Waves: Growth through Intensive and Extensive Search," Econometrica, Econometric Society, vol. 58(6), pages 1391-1409, November.
    5. Emery, Kenneth M. & Koenig, Evan F., 1992. "Forecasting turning points : Is a two-state characterization of the business cycle appropriate?," Economics Letters, Elsevier, vol. 39(4), pages 431-435, August.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Klaus Wälde, 2005. "Endogenous Growth Cycles," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(3), pages 867-894, August.
    2. Horii, Ryo, 2012. "Wants and past knowledge: Growth cycles with emerging industries," Journal of Economic Dynamics and Control, Elsevier, vol. 36(2), pages 220-238.
    3. Patrick Francois & Huw Lloyd- Ellis, 2005. "I - Q Cycles," Macroeconomics 0511023, EconWPA.
    4. Maliar, Lilia & Maliar, Serguei, 2005. "Solving nonlinear dynamic stochastic models: an algorithm computing value function by simulations," Economics Letters, Elsevier, vol. 87(1), pages 135-140, April.
    5. Bei Li & Jie Zhang, 2011. "Subsidies in an Economy with Endogenous Cycles Over Neoclassical Investment and Neo-Schumpeterian Innovation Regimes," Economics Discussion / Working Papers 11-23, The University of Western Australia, Department of Economics.
    6. Phillips, Kerk L. & Wrase, Jeff, 2006. "Is Schumpeterian `creative destruction' a plausible source of endogenous real business cycle shocks?," Journal of Economic Dynamics and Control, Elsevier, vol. 30(11), pages 1885-1913, November.
    7. Klaus Wälde, 2003. "Endogenous Business Cycles and Growth," CESifo Working Paper Series 920, CESifo Group Munich.
    8. Pakko Michael R., 2005. "Changing Technology Trends, Transition Dynamics, and Growth Accounting," The B.E. Journal of Macroeconomics, De Gruyter, vol. 5(1), pages 1-42, December.
    9. Francois, P. & Lloyd-Ellis, H., 2001. "Animal Spirits Meets Creative Destruction," Discussion Paper 2001-36, Tilburg University, Center for Economic Research.
    10. Maliar, Lilia & Maliar, Serguei, 2004. "Endogenous Growth And Endogenous Business Cycles," Macroeconomic Dynamics, Cambridge University Press, vol. 8(05), pages 559-581, November.
    11. Jakub Growiec & Ingmar Schumacher, 2013. "Technological opportunity, long-run growth, and convergence," Oxford Economic Papers, Oxford University Press, vol. 65(2), pages 323-351, April.
    12. Francois, P. & Lloyd-Ellis, H., 2003. "Co-movement, Capital and Contracts : 'Normal' Cycles Through Creative Destruction," Discussion Paper 2003-62, Tilburg University, Center for Economic Research.
    13. Kerk Phillips & Jeffrey M. Wrase, 1999. "Schumpeterian growth and endogenous business cycles," Working Papers 99-20, Federal Reserve Bank of Philadelphia.
    14. Francisco Fatás-Villafranca & Gloria Jarne & Julio Sánchez-Chóliz, 2012. "Innovation, cycles and growth," Journal of Evolutionary Economics, Springer, vol. 22(2), pages 207-233, April.
    15. Kunihiko Konishi, 2015. "Growth Cycles in a Two-country Model of Innovation," Discussion Papers in Economics and Business 15-07, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
    16. Ryo Horii, 2001. "Endogenous Growth and Cycles with a Continuum of Technologies," ISER Discussion Paper 0560, Institute of Social and Economic Research, Osaka University.
    17. Patrick Francois & Huw Lloyd-Ellis, 2003. "Animal Spirits Through Creative Destruction," American Economic Review, American Economic Association, vol. 93(3), pages 530-550, June.

    More about this item

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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