|
EconStor >
Cardiff University >
Cardiff Business School, Cardiff University >
Cardiff Economics Working Papers >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/65762
|
| | |
Full metadata record
| DC Field | | Value | | Language |
| dc.contributor.author | | Gillman, Max | | en_US |
| dc.date.accessioned | | 2012-05-18 | | en_US |
| dc.date.accessioned | | 2012-11-02T14:27:29Z | | - |
| dc.date.available | | 2012-11-02T14:27:29Z | | - |
| dc.date.issued | | 2012 | | en_US |
| dc.identifier.uri | | http://hdl.handle.net/10419/65762 | | - |
| dc.description.abstract | | The paper shows how a dynamic neoclassical AS-AD can be derived and used to describe business cycles and growth trends to undergraduates. Derived within the Ramsey-Cass-Koopmans (RCK) model, the AS-AD is the stationary equilibrium of the deterministic dynamic general equilibrium framework. Allowing Solow exogenous growth, the AS-AD is derived along the balanced growth path equilibrium. The derivation first builds consumption demand, aggregate demand, and then aggregate supply through the equilibrium conditions and a closed form solution for the capital stock. Through a comparative static change in goods sector productivity, the paper shows the basic failing of the standard RBC model. Allowing a second comparative static change in the consumer's time endowment, this captures a change in the external margin of labor supply. These comparative statics enable explanation of the business cycle, and Solow-plus growth trends including education time and working time. In extension of RCK, the paper shows beyond the undergraduate level, how to derive AS-AD when including human capital and endogenous growth. This allows an endogenous change in the time endowment for work and leisure through a change in human capital productivity, with a similar but more fundamental AS-AD story of business cycles and growth trends. | | en_US |
| dc.language.iso | | eng | | en_US |
| dc.publisher | | Cardiff Univ, Cardiff Business School, Economics Section Cardiff | | en_US |
| dc.relation.ispartofseries | | Cardiff Economics Working Papers E2012/12 | | en_US |
| dc.subject.jel | | A22 | | en_US |
| dc.subject.jel | | A23 | | en_US |
| dc.subject.jel | | E13 | | en_US |
| dc.subject.ddc | | 330 | | en_US |
| dc.subject.keyword | | Ramsey-Cass-Koopmans | | en_US |
| dc.subject.keyword | | supply | | en_US |
| dc.subject.keyword | | demand | | en_US |
| dc.subject.keyword | | state variable | | en_US |
| dc.title | | AS-AD in the standard dynamic neoclassical model: Business cycles and growth trends | | en_US |
| dc.type | | Working Paper | | en_US |
| dc.identifier.ppn | | 715900587 | | en_US |
| dc.rights | | http://www.econstor.eu/dspace/Nutzungsbedingungen | | en_US |
| Appears in Collections: | | Cardiff Economics Working Papers
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|