The Logarithm Model of Development Power: A Tool to Analyze the Motivity of Economic Growth
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.
|Date of creation:||24 May 2005|
|Note:||Type of Document - pdf; pages: 16. This is the sixth of working papers for researches about Development Power (DP)|
|Contact details of provider:|| Web page: http://econwpa.repec.org|
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