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. Working Paper 9. Centre for Applied Finance and Economics (CAFE), Birmingham City Business School, Birmingham City University. (Submitted)
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Nomaler_Spinola_Verspagen_2021_CAFE_WP9_RandD_Economic Growth in a Supermultiplier Model (1).pdf - Submitted Version Download (1MB) |
Abstract
We investigate how economic growth in a demand-led 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. Consumption smoothing (between periods of high and low employment) by workers is the mechanism that keeps the growing economy 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: | Monograph (Working Paper) | ||||
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| Identification Number: | 9 | ||||
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| 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 > Birmingham City Business School > Centre for Applied Finance and Economics Faculty of Business, Law and Social Sciences > Birmingham City Business School |
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| Depositing User: | Danilo Sartorello Spinola | ||||
| Date Deposited: | 12 Jan 2021 10:25 | ||||
| Last Modified: | 22 Mar 2023 11:48 | ||||
| URI: | https://www.open-access.bcu.ac.uk/id/eprint/10718 |
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