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The Logarithm Model of Development Power: A Tool to Analyze the Motivity of Economic Growth

Author

Listed:
  • Feng Dai

    (Zhengzhou Information Engineering University)

  • Hui Liu

    (Zhengzhou Information Engineering University)

  • Zifu Qin

    (Zhengzhou Information Engineering University)

Abstract

After the discussions to exponential and power model [F. Dai, 2005], this paper points out there are three kinds of basic modes in the macroeconomic process, i.e., the exponential, power and logarithm mode, and discusses the logarithm model of Development Power (DP). By the analysis on logarithm model of DP, we will see the reasons, of which there are anomaly cycles in economic process, are just the alternate motion of DP accumulating and releasing. And that is also the reasons that there are the economic fluctuations in production markets. The logarithm model of DP can also describe the different characters of DP motion at the different stage, and indicates in analytic way that the diffusion of DP and the diversifications of economic productivity also might occur after an economic recession. The empirical researches are done about the conclusions in this paper, and the results express that the logarithm model is better than the power model and exponential model of DP in many cases. These three models of DP can not be replaced one another.

Suggested Citation

  • Feng Dai & Hui Liu & Zifu Qin, 2005. "The Logarithm Model of Development Power: A Tool to Analyze the Motivity of Economic Growth," Macroeconomics 0505022, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpma:0505022
    Note: Type of Document - pdf; pages: 16. This is the sixth of working papers for researches about Development Power (DP)
    as

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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/mac/papers/0505/0505022.pdf
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    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Plosser, Charles I, 1989. "Understanding Real Business Cycles," Journal of Economic Perspectives, American Economic Association, vol. 3(3), pages 51-77, Summer.
    3. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard H, 1986. "Fairness and the Assumptions of Economics," The Journal of Business, University of Chicago Press, vol. 59(4), pages 285-300, October.
    4. Feng Dai & Bao- hua Sun & Jie Sun, 2004. "Derivative Process Model of Development Power in Industry: Empirical Research and Forecast for Chinese Software Industry and US Economy," Macroeconomics 0405024, University Library of Munich, Germany.
    5. Kydland, Finn E & Prescott, Edward C, 1982. "Time to Build and Aggregate Fluctuations," Econometrica, Econometric Society, vol. 50(6), pages 1345-1370, November.
    6. feng dai & Jianqiang Liu, 2004. "Development Power and Derivative Process: A Mode and Theory for Macroeconomy Analysis," Macroeconomics 0403015, University Library of Munich, Germany.
    7. Long, John B, Jr & Plosser, Charles I, 1983. "Real Business Cycles," Journal of Political Economy, University of Chicago Press, vol. 91(1), pages 39-69, February.
    8. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-291, March.
    9. Feng Dai & Ying Wang & Zifu Qin, 2005. "Development Power and Its Power Model: The Analytic Approach for Continuous Motivity of Economic Growth," Macroeconomics 0505016, University Library of Munich, Germany.
    10. Romer, Paul M, 1986. "Cake Eating, Chattering, and Jumps: Existence Results for Variational Problems," Econometrica, Econometric Society, vol. 54(4), pages 897-908, July.
    11. Lucas, Robert Jr, 1976. "Econometric policy evaluation: A critique," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 1(1), pages 19-46, January.
    12. Tversky, Amos & Kahneman, Daniel, 1986. "Rational Choice and the Framing of Decisions," The Journal of Business, University of Chicago Press, vol. 59(4), pages 251-278, October.
    13. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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    More about this item

    Keywords

    Development Power (DP); Partial Distribution; logarithm model; macroeconomic analysis;

    JEL classification:

    • E - Macroeconomics and Monetary Economics

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