Growth and Output Fluctuations
Output fluctuations are driven by expectations about the degree of competition in the product market (and R&D sector). We examine how the characteristics of endogenous cycles change in the long run, as labour productivity grows faster. 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-linear relation. Once the growth of labour productivity is endogenised with learning-by- doing, it grows faster in contraction if the strength of inter-industry learning spillovers is relatively weak.
|Date of creation:||Oct 1998|
|Date of revision:|
|Contact details of provider:|| Postal: Adam Smith Building, Glasgow G12 8RT|
Phone: 0141 330 4618
Fax: 0141 330 4940
Web page: http://www.gla.ac.uk/schools/business/research/
More information through EDIRC
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.:
- 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.
- 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).
- Saint-Paul, Gilles, 1997.
"Business Cycles and Long-run Growth,"
CEPR Discussion Papers
1642, C.E.P.R. Discussion Papers.
- Daniel E. Sichel, 1989.
"Business cycle asymmetry: a deeper look,"
Working Paper Series / Economic Activity Section
93, Board of Governors of the Federal Reserve System (U.S.).
- Li, Chol-Won, 2001.
"Science, Diminishing Returns and Long Waves,"
University of Manchester, vol. 69(5), pages 553-73, Special I.
- 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.
- Jeffrey R. Campbell, 1997. "Computational Appendix to Entry, Exit, Embodied Technology, and Business Cycles," Technical Appendices campbell98, Review of Economic Dynamics.
- Jeffrey R. Campbell, 1997. "Entry, Exit, Embodied Technology, and Business Cycles," NBER Working Papers 5955, National Bureau of Economic Research, Inc.
- 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.
- J Malley & V A Muscatelli., . "Business Cycles and Productivity Growth: Are Temporary Downturns Productive or Wasteful?," Working Papers 9605, Business School - Economics, University of Glasgow.
- 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.
- 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.
- Philippe Aghion & Peter Howitt, 1990. "A Model of Growth Through Creative Destruction," NBER Working Papers 3223, National Bureau of Economic Research, Inc.
- Stadler, George W, 1990. "Business Cycle Models with Endogenous Technology," American Economic Review, American Economic Association, vol. 80(4), pages 763-78, September.
- 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.
- Ricardo J. Caballero & Mohamad L. Hammour, 1991.
"The Cleansing Effect of Recessions,"
NBER Working Papers
3922, National Bureau of Economic Research, Inc.
- Corriveau, Louis, 1994. "Entrepreneurs, Growth and Cycles," Economica, London School of Economics and Political Science, vol. 61(241), pages 1-15, February.
- 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.
- Baumol, William J. & Benhabib, Jess, 1987. "Chaos: Significance, Mechanism, and Economic Applications," Working Papers 87-16, C.V. Starr Center for Applied Economics, New York University.
- Helpman, E. & Trajtenberg, M., 1996.
"Diffusion of General Purpose Technologies,"
24-96, Tel Aviv - the Sackler Institute of Economic Studies.
- Paul M Romer, 1999.
"Endogenous Technological Change,"
Levine's Working Paper Archive
2135, David K. Levine.
- 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.
- Amable, Bruno, 1995. "Endogenous growth and cycles through radical and incremental innovation," CEPREMAP Working Papers (Couverture Orange) 9504, CEPREMAP.
- Van Ewijk, Casper, 1997. "Entry and Exit, Cycles, and Productivity Growth," Oxford Economic Papers, Oxford University Press, vol. 49(2), pages 167-87, April.
- 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.
When requesting a correction, please mention this item's handle: RePEc:gla:glaewp:9810. 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: (Jeanette Findlay)
If references are entirely missing, you can add them using this form.