Recently, Jones (2002} and Barro and Sala−í−Martin (2004) pointed out that the neoclassical growth model with a Cobb−Douglas technology has a closed−form solution. This note makes a similar remark for the Malthusian model: I develop and characterize a closed−form solution. Moreover, I emphasize structural similarities between the Malthusian and the neoclassical model if the dynamic behavior is ...

Most Real Business Cycle (RBC) models use the Solow residual as a proxy for a measured aggregate productivity shock. This paper studies implications of the Malmquist productivity index for business cycle analysis using a standard RBC model. By doing this, the study seeks to broaden areas of macroeconomic applications for the Malmquist index. More specifically, this paper chooses aggregate produ...

This study aims to acknowledge the effect of applying two-sector Lewis and Solow neoclassical growth model in Indonesia’s economic growth. The variables are Urbanization Rate, Labor Industry Sector, Human Development Index, Total Factor Productivity, GDP. research is an associative quantitative method with multiple linear regression on time series data. result showed that all simultaneously aff...

I study the effect of dynamic firm entry, scale economies and oligopolistic competition on measured productivity. These features cause endogenous, procyclical, fluctuations in productivity (Solow residual). analytically decompose into a pure technology component an endogenous component. show that arises because entry firms to vary their optimal production which turn interacts with returns gener...

"A unified growth theory is developed that accounts for the roughly constant living standards displayed by world economies prior to 1800 as well as the growing living standards exhibited by modern industrial economies. Our theory also explains the industrial revolution, which is the transition from an era when per capita incomes are stagnant to one with sustained growth.... [The authors] use a ...

The two-level CES aggregate production function that nests a CES into another CES function has recently been used extensively in theoretical and empirical applications of macroeconomics. This paper examines its theoretical properties and establishes existence and stability conditions of equilibria under the Solow and Diamond growth models. In addition, it examines the effect of changes in subst...

We study a stochastic, discrete-time, two-sector growth model á-la Solow (1956) characterized by perpetual growth. Assuming that exogenous i.i.d. shocks hit the physical production sector, we show that the capital dynamics can be converted, through an appropriate log-transformation, into an Iterated Function System converging to an invariant distribution supported on a Cantor set.

The sources of economic growth and development have been puzzling economists from the modern dawn of the profession. While the Solow-Swan neo-classical model dominated research on growth in the 1960s and 1970s, the 1980s saw the emergence of growth theories that disputed, largely on theoretical grounds, the Solow-Swan assumptions and conclusions. In this paper, we do not examine the determinant...