Disequilibrium Growth Theory: Foundations, Synthesis, Perspectives
|Author(s):||Carl Chiarella & Peter Flaschel|
|Date of publication:||March 1999|
|Working paper number:||85|
In this paper we survey, also for the general reader interested in the non-market cleaning approach to growth and fluctuations, the foundations, the core model and the general framework underlying our joint work on integrated disequilibrium models of monetary growth, drawing also on joint work with further co-authors in various places. We found the basic working model of this type on appropriately reformulated and extended partial dynamic models already existing in the literature. We then develop the obtained working model further into a theoretical continuous-time disequilibrium growth model of a very general nature. We then show that there are strong relationships between our general model and models currently used for structural macroeconomic model-building and their applications. In this way we want to contribute both to the further development and analysis of full-sized theoretical models of disequilibrium growth and to the theoretical penetration of their modern counterparts in the applied literature. Such development and analysis is based on detailed steady state analyses, on use of theoretical investigations of all important subdynamics that are there involved (in isolation as well as in their interaction) and, on computer simulations based on a variety of modern numerical tools of nonlinear dynamical analysis.
|Paper:||Download (Format: PDF, Size: 12.4 Mb)|
Chiarella, C., Flaschel, P., Groh, G., Koper, C. and Semmler, W., 1999, "Towards Applied Disequilibrium Growth Theory: VI Substitution, Money-Holdings, Wealth-Effects and Further Extensions", Working Paper: 98, Finance Discipline Group, University of Technology, Sydney.
Flaschel, P., 2001, "Disequilibrium Growth in Monetary Economies: Basic Components and the KMG Working Model", In Lionello F. Punzo (ed) Cycles, Growth and Structural Change: Theories and Empirical Evidence, 128-168
Manfredi, P., Fanti, L., 2006, "Demography in Macroeconomic Models: When Labour Supply Matters for Economic Cycles", Metroeconomica, 57(4), 536-563.