Arbeitspapier
AS-AD in the Standard Dynamic Neoclassical Model: Business Cycles and Growth Trends
The paper shows how a dynamic neoclassical AS-AD can be derived and used to describe business cycles and growth trends to undergraduates. Derived within the Ramsey-Cass-Koopmans (RCK) model, the AS-AD is the stationary equilibrium of the deterministic dynamic general equilibrium framework. Allowing Solow exogenous growth, the AS-AD is derived along the balanced growth path equilibrium. The derivation first builds consumption demand, aggregate demand, and then aggregate supply through the equilibrium conditions and a closed form solution for the capital stock. Through a comparative static change in goods sector productivity, the paper shows the basic failing of the standard RBC model. Allowing a second comparative static change in the consumer's time endowment, this captures a change in the "external margin" of labor supply. These comparative statics enable explanation of the business cycle, and "Solow-plus" growth trends including education time and working time. In extension of RCK, the paper shows beyond the undergraduate level, how to derive AS-AD when including human capital and endogenous growth. This allows an endogenous change in the time endowment for work and leisure through a change in human capital productivity, with a similar but more fundamental AS-AD story of business cycles and growth trends.
- Sprache
-
Englisch
- ISBN
-
978-615-5243-21-9
- Erschienen in
-
Series: IEHAS Discussion Papers ; No. MT-DP - 2012/22
- Klassifikation
-
Wirtschaft
Economic Education and Teaching of Economics: Undergraduate
Economic Education and Teaching of Economics: Graduate
General Aggregative Models: Neoclassical
- Thema
-
Ramsey-Cass-Koopmans
supply
demand
state variable
Gesamtwirtschaftliches Angebot
Gesamtwirtschaftliche Nachfrage
Dynamisches Gleichgewicht
Neoklassische Theorie
Konjunktur
Schock
Endogenes Wachstumsmodell
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Gillman, Max
- Ereignis
-
Veröffentlichung
- (wer)
-
Hungarian Academy of Sciences, Institute of Economics, Centre for Economic and Regional Studies
- (wo)
-
Budapest
- (wann)
-
2012
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:46 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Gillman, Max
- Hungarian Academy of Sciences, Institute of Economics, Centre for Economic and Regional Studies
Entstanden
- 2012
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