Growth and Cycles
There is a long tradition in macroeconomics of treating growth and cycles as distinct phenomena. However, various economists have also recognized the virtue of incorporating the two forces into a single framework and to study the way they are related. This article reviews this literature, with emphasis on attempts not only to integrate growth and cycles into a single framework but also to endogenize growth, cycles, or both.
KeywordsCapital accumulation Endogenous growth Growth and cycles Innovation Kydland, F. Prescott, E. Ramsey model Research and development Risk Technical change Precautionary savings
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