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Strategies for Growth in a Macroeconomic Setting

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  • van de Klundert, T.
  • Smulders, S.

Abstract

Endogenous growth theory explains long-run economic expansion by intertemporal preferences, technology, and other factors, e.g., taxes. Here the authors focus on more subtle and strategic factors in a theory of endogenous growth that follows M. F. Scott (1989) and is based on learning-by-doing and learning-by-watching. Coordination of investment in the presence of learning externalities boosts growth. Managerial discretion based on the separation between ownership and control affects growth but the magnitude of the effects depends on the way firms set labor demand. Uncertainty positively affects growth because of precautionary savings. The effect is amplified if projects with higher growth rates are more risky. Copyright 1995 by Blackwell Publishers Ltd and The Victoria University of Manchester
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Suggested Citation

  • van de Klundert, T. & Smulders, S., 1992. "Strategies for Growth in a Macroeconomic Setting," Papers 9204, Tilburg - Center for Economic Research.
    • Handle: RePEc:fth:tilbur:9204
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    Cited by:

    1. Sebastian V?DUVA & Ana GIURCA & Ioan FOTEA & Petru FILI, 2014. "The Economic Impact Of Doubling The Number Of Employees In The Romanian It Sector," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 8(1), pages 458-465, November.
    2. Igor Pospelov & Stanislav Radionov, 2013. "Multisector monopolistic competition model," HSE Working papers WP BRP 34/EC/2013, National Research University Higher School of Economics.

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