Abstract
This paper builds a dynamic multisectoral general equilibrium model of Schumpeterian growth and fluctuations based on the endogenous introduction of new products. The set of technological opportunities determines the degree of product-quality upgrading and consists of breakthroughs and improvements the latter exhibiting diminishing returns. If the degree of diminishing returns to technological improvements is low, then there is no steady-state equilibrium but cycles of breakthroughs and improvements. We analyze two symmetric stable patterns of innovation which generate endogenous cycles and growth. There is a negative correlation between the duration of each cycle and the long-run growth trend.
| Original language | English |
|---|---|
| Pages (from-to) | 905-923 |
| Number of pages | 19 |
| Journal | Journal of Economic Dynamics and Control |
| Volume | 20 |
| Issue number | 5 |
| DOIs | |
| Publication status | Published - 1 Jan 1996 |
| Externally published | Yes |
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Keywords
- Endogenous cycles
- Endogenous growth
- New products
- Schumpeter
- Technological change
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A multisectoral general equilibrium model of Schumpeterian growth and fluctuations. / Cheng, Leonard K.; Dinopoulos, Elias.
In: Journal of Economic Dynamics and Control, Vol. 20, No. 5, 01.01.1996, p. 905-923.Research output: Journal Publications › Journal Article (refereed)
TY - JOUR
T1 - A multisectoral general equilibrium model of Schumpeterian growth and fluctuations
AU - Cheng, Leonard K.
AU - Dinopoulos, Elias
PY - 1996/1/1
Y1 - 1996/1/1
N2 - This paper builds a dynamic multisectoral general equilibrium model of Schumpeterian growth and fluctuations based on the endogenous introduction of new products. The set of technological opportunities determines the degree of product-quality upgrading and consists of breakthroughs and improvements the latter exhibiting diminishing returns. If the degree of diminishing returns to technological improvements is low, then there is no steady-state equilibrium but cycles of breakthroughs and improvements. We analyze two symmetric stable patterns of innovation which generate endogenous cycles and growth. There is a negative correlation between the duration of each cycle and the long-run growth trend.
AB - This paper builds a dynamic multisectoral general equilibrium model of Schumpeterian growth and fluctuations based on the endogenous introduction of new products. The set of technological opportunities determines the degree of product-quality upgrading and consists of breakthroughs and improvements the latter exhibiting diminishing returns. If the degree of diminishing returns to technological improvements is low, then there is no steady-state equilibrium but cycles of breakthroughs and improvements. We analyze two symmetric stable patterns of innovation which generate endogenous cycles and growth. There is a negative correlation between the duration of each cycle and the long-run growth trend.
KW - Endogenous cycles
KW - Endogenous growth
KW - New products
KW - Schumpeter
KW - Technological change
UR - http://www.scopus.com/inward/record.url?scp=0030143872&partnerID=8YFLogxK
U2 - 10.1016/0165-1889(95)00881-0
DO - 10.1016/0165-1889(95)00881-0
M3 - Journal Article (refereed)
AN - SCOPUS:0030143872
VL - 20
SP - 905
EP - 923
JO - Journal of Economic Dynamics and Control
JF - Journal of Economic Dynamics and Control
SN - 0165-1889
IS - 5
ER -