The Hicksian trade cycle with floor and ceiling dependent on capital stock
2007 (English)In: Journal of Economic Dynamics and Control, ISSN 0165-1889, Vol. 31, no 2, 575-592 p.Article in journal (Refereed) Published
This article reconsiders the Hicksian multiplier – accelerator model with ‘floor’ and ‘ceiling’. The new thrust is that these constraints are tied to the actual stock of capital, the floor to the depreciation on this stock, the ceiling to capital as a limiting production factor according to the fixed proportions technology that also underlies the principle of acceleration. For capital formation just the Hicksian investment theory is used. The result is one unified model creating economic growth and growth rate cycles.
Place, publisher, year, edition, pages
2007. Vol. 31, no 2, 575-592 p.
Business cycle models, Multiplier – accelerator models, Floor–ceiling models, Complex dynamics
IdentifiersURN: urn:nbn:se:umu:diva-100245OAI: oai:DiVA.org:umu-100245DiVA: diva2:790951