A Mathematical Version of Garrison's Model
2017. Quarterly Journal of Austrian Economics. Vol. 19, No. 3, pp. 225-247
26 Pages Posted: 30 Aug 2016 Last revised: 15 Feb 2020
Date Written: April 12, 2016
We develop a simple mathematical version of Garrison’s model. The purpose to develop a mathematical framework is to (1) show how such representation can be used and (2) layout a path for future work that requires a more flexible version of Garrison’s treatment than the graphical exposition. While the graphical model is limited to three dimensions, a mathematical version can include more variables of interest. First, we develop the mathematical framework of Garrison’s treatment. Then we apply it to the cases of increase in savings, secular growth, and the Austrian business cycle theory.
Keywords: austrian business cycle model, Garrison model
JEL Classification: E14, E32
Suggested Citation: Suggested Citation