The impact of science on economic growth and its cycles: the mathematical dynamics determined by the basic macroeconomic facts
The author shows that the enormous gap between theory and facts in modern macroeconomics can only be eliminated by nonlinear macroeconomic dynamics with the following special characteristics: First of all, only certain group-theoretical invariants generate the correct growth cycles with irregularly varying lengths, not any stochastic process as usually applied for this purpose. Furthermore, a special extended value function and generalized human capital are needed for a correct representation of scientific and technological innovation. Finally, the correct nonlinear macroeconomic dynamics are not reducible to microeconomics, for both of the above mentioned reasons.
What people are saying - Write a review
We haven't found any reviews in the usual places.
The Macroeconomic Problem
The Canonical Formalism of Macro
9 other sections not shown
Other editions - View all
The Impact of Science on Economic Growth and its Cycles: The Mathematical ...
Limited preview - 2012
anomalous business cycles anomalous cycles anomalous growth path arctan average balanced-growth path basic macroeconomic facts calculations calibration canonical formalism computed constant constructed in Chapter consumption Correlations with output corresponding cycle center cycle equations cycle function defined detrended cycle economic growth economic variables effects of savings empirical estimates error squares Euler equations formulae given gives Golden Age period growth cycles growth rate growth theory Hamiltonian human capital investment Kydland-Prescott leads and lags Legendre function Lucas macroeconomic dynamics constructed minimal dynamics minimal macroeconomic dynamics nomic nonmaterial values numbers observed change ordinary business cycles ordinary cycles output correlation output per worker output/capital ratio Penn tables physical capital Plosser fact Prescott procyclicality productivity of labour quantitative quarters rate of output savings rate second normal form Solow model standard deviation stochastic optimization stochastic shocks stylized facts sum of error theoretical predictions tion total hours transversality conditions U.S. economy value function