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Dynamic Growth Rate of U.S. Economy

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  • Hossain, Md. Mobarak

Abstract

This paper reports the estimates of the dynamic growth rate of U.S. economy using exponential growth model, Cob-Douglas production function with a regression framework. The estimates indicates that 100% output growth is broken down into 58% technology growth, 19.10% labor growth, and 22.90% capital growth. Growth rates of U.S. production, capital, and employment are decreasing by 0.4%, 0.6%, and 0.01% respectively for each additional year regardless of recession while growth rate of technological changes in U.S. economy has been changing in a systematic way. It also shows that forecasted growth rate of U.S. output with restricted elasticity is lower than that with unrestricted elasticity.

Suggested Citation

  • Hossain, Md. Mobarak, 2018. "Dynamic Growth Rate of U.S. Economy," MPRA Paper 91042, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:91042
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    References listed on IDEAS

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    2. Hall, Robert E., 1979. "A theory of the natural unemployment rate and the duration of employment," Journal of Monetary Economics, Elsevier, vol. 5(2), pages 153-169, April.
    3. Rachel M. Friedberg & Jennifer Hunt, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 23-44, Spring.
    4. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 407-443.
    5. Groot, Wim & Maassen van den Brink, Henriette, 2000. "Overeducation in the labor market: a meta-analysis," Economics of Education Review, Elsevier, vol. 19(2), pages 149-158, April.
    6. Chang-Jin Kim & Charles R. Nelson, 1999. "Has The U.S. Economy Become More Stable? A Bayesian Approach Based On A Markov-Switching Model Of The Business Cycle," The Review of Economics and Statistics, MIT Press, vol. 81(4), pages 608-616, November.
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    More about this item

    Keywords

    Elasticity; Cobb-Douglas production function; exponential growth model.;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy

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