R&D-based Economic Growth in a Supermultiplier Model
Nomaler, Önder and Spinola, Danilo and Verspagen, Bart (2021) R&D-based Economic Growth in a Supermultiplier Model. Structural Change and Economic Dynamics. ISSN 0954-349X
Preview |
Text
Paper_Supermultiplier_SCED.pdf - Accepted Version Available under License Creative Commons Attribution. Download (679kB) |
Abstract
We investigate how economic growth in a demand-driven economy with semi-endogenous productivity growth can be compatible with a stable employment path. Our model uses a Sraffian supermultiplier (SSM), and we endogenize the growth rate of autonomous demand, and semi-endogenize productivity growth. The basic model has a steady state that is consistent with a stable employment rate, and in which the growth rate is determined by R&D expenditures. Consumption smoothing (between periods of high and low employment) by workers is the mechanism that ensures that demand keeps up with productivity growth and that the growing economy is stable. We also introduce a version of the model where the burden for stabilization falls upon government fiscal policy. This also yields a stable growth path, although the parameter restrictions for stability are more demanding in this case.
Item Type: | Article |
---|---|
Identification Number: | 10.1016/j.strueco.2021.07.002 |
Dates: | Date Event 13 July 2021 Accepted 3 August 2021 Published Online |
Uncontrolled Keywords: | Economic growth model, Sraffian supermultiplier, Research and Development (R&D) |
Subjects: | CAH15 - social sciences > CAH15-02 - economics > CAH15-02-01 - economics |
Divisions: | Faculty of Business, Law and Social Sciences > College of Accountancy, Finance and Economics > Centre for Accountancy Finance and Economics Faculty of Business, Law and Social Sciences > College of Accountancy, Finance and Economics Faculty of Business, Law and Social Sciences > College of Business, Digital Transformation & Entrepreneurship |
Depositing User: | Danilo Sartorello Spinola |
Date Deposited: | 16 Jul 2021 10:37 |
Last Modified: | 20 Jun 2024 12:05 |
URI: | https://www.open-access.bcu.ac.uk/id/eprint/11938 |
Actions (login required)
![]() |
View Item |