Abstract
Endogenous growth models are mainly concerned with the studying of the long run properties without making explicit the cyclical dynamics of the economy. This chapter presents a cyclical growth model in which the physical capital accumulation is augmented with a human capital accumulation process, including a learning by doing effect and a rationalizing of the productive activity mechanism. The growth rate is tnen endogenous and keeps the trace of business cycle fluctuations. The model is able to explain the cycle-growth integration. Analyzing the dynamics of the model. we snow that transitory shocks exert a permanent effect, whose sign depends on the relative magnitude of the learning by doing and rationalizing mechanisms. We then seek a calibration allowing one to match, in a quite encouraging manner, the cyclical pattern of the historical fluctuations of the french and U.S. economies.
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© 1995 Springer-Verlag Berlin Heidelberg
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Collard, F. (1995). Business Cycle and Endogenous Growth: Learning by Doing versus Rationalizing. In: Henin, PY. (eds) Advances in Business Cycle Research. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-57817-5_10
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DOI: https://doi.org/10.1007/978-3-642-57817-5_10
Publisher Name: Springer, Berlin, Heidelberg
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