The effect of business cycles on growth: Keynes vs. Schumpeter.
In contrast to recent ‘neo-Schumpeterian’ models, which argue that business cycles are good for growth, we develop a ‘neo-Keynesian’ model, where monopolistically competitive firms set prices and produce output in advance of the realization of (stochastic) monetary velocity. In such a setting, ther...
| Publicado en: | Economic Inquiry Vol. 36; no. 3; pp. 501 - 512 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
July 1998
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=511068597&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 511068597 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00952583 EIQ jtl: Economic Inquiry issn: 00952583 maglogo: N pubinfo: dt: July 1998 vid: 36 iid: 3 pid: 480 pub: Wiley-Blackwell artinfo: ui: 511068597 10.1111/j.1465-7295.1998.tb01731.x ppf: 501 ppct: 11 formats: fmt: @attributes: type: T tig: atl: The effect of business cycles on growth: Keynes vs. Schumpeter. aug: au: Dehejia, Vivek H. Rowe, Nicholas su: Schumpeter, Joseph Alois, 1883-1950 Keynesian economics Mathematical models of business cycles sug: subj: Keynesian economics Mathematical models of business cycles Schumpeter, Joseph Alois, 1883-1950 ab: In contrast to recent ‘neo-Schumpeterian’ models, which argue that business cycles are good for growth, we develop a ‘neo-Keynesian’ model, where monopolistically competitive firms set prices and produce output in advance of the realization of (stochastic) monetary velocity. In such a setting, there is an asymmetry in the effect of business cycles on income: recessions are bad, because the representative firm is demand-constrained and its unsold output is wasted, but booms are not good, because the firm is output-constrained and cannot produce any more output. A more severe business cycle thus reduces the expected income of a firm, and the expected return to investment, which reduces the growth rate of the economy. (JEL E32, E52, O41, L13). Reprinted by permission of Western Economic International 7400 Center Ave., Ste. 109, Huntington Beach, CA 92647–3039, USA Ph. 1–714–898–3222, Fax 1–714–891–6715 E-mail info@weainternational.org http://www.weainternational.org pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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