Growth and Cycles, in the Mode of Marx and Schumpeter

28 Pages Posted: 15 Oct 2009

See all articles by Michele Boldrin

Michele Boldrin

Washington University in St. Louis

Date Written: 2009-05-01

Abstract

I propose a theory of endogenous growth and cycles under competitive conditions. Firms choose how many workers to hire, how much to invest, and which technologies to use. New capacity, embodying labor-saving technologies, is costlier than old one but allows for a lower wage bill. The interaction between labor-saving innovations and changes in the relative price of labor is the source of growth cycles.

Suggested Citation

Boldrin, Michele, Growth and Cycles, in the Mode of Marx and Schumpeter (2009-05-01). Scottish Journal of Political Economy, Vol. 56, Issue 4, pp. 415-442, September 2009. Available at SSRN: https://ssrn.com/abstract=1489061 or http://dx.doi.org/10.1111/j.1467-9485.2009.00492.x

Michele Boldrin (Contact Author)

Washington University in St. Louis ( email )

One Brookings Drive
Campus Box 1208
Saint Louis, MO MO 63130-4899
United States

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