A common belief in economic growth theory is that the instability of the balanced growth path of models based on a non-neoclassical production theory, such as the Harrod–Domar or Goodwin-type models, may be removed by introducing neoclassical technology and substitutability between factors. This does not need to be true. As shown in this paper, Solow-type models with sluggishly adjusting, non-market-clearing, real wages and endogenous fertility may suffer instability. Not only: instability may be favoured by too strong a degree of neoclassical substitution in the economy.
|Autori:||Fanti L; Manfredi P|
|Titolo:||Neoclassical production theory and growth with unemployment: the stability issue revisited|
|Anno del prodotto:||2009|
|Digital Object Identifier (DOI):||10.1016/j.strueco.2008.12.002|
|Appare nelle tipologie:||1.1 Articolo in rivista|