صندلی اداری

MEMORY EFFECT ON LEARNING-BY-DOING EXTERNALITIES PROCESS GENERATES ENDOGENOUS FLUCTUATIONS ON BUSINESS CYCLE

Jair S. Dos Santos

Abstract


With a generalized version of the endogenous growth model by Romer  in [20] it is analysed the dynamical characteristics of the  effects of the learning-by-doing (LBD)  externalities on the  memory-dependent production process.  It is regarded as an  quasi-homogeneous production function whose factors of  substitutability are non-constant.  It is assumed that the consumer  maximizes the utility of consumption according to a constant  relative risk-aversion function.  The functional forms for the  optimal capital formation trajectory and externalities with  two-delayed arguments are solutions obtained by optimality  principle. The optimal problem admits a steady state. Taking  consumption elasticity as a function of one of the delays, we  observe economic fluctuations which can be attenuated by the actions  of both the delay effect and damping. But, there is a critical value  for consumption elasticity at which economic fluctuations become  unstable.

Full Text: PDF

Refbacks

  • There are currently no refbacks.
گن لاغری

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

IJDEA, Academic Publications, Ltd.