Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/154198
Authors: 
Growiec, Jakub
McAdam, Peter
Muck, Jakub
Year of Publication: 
2015
Series/Report no.: 
ECB Working Paper No. 1765
Abstract: 
Based on long US time series we document a range of empirical properties of the labor’s share of GDP, including its substantial medium-run swings. We explore the extent to which these empirical regularities can be explained by a calibrated micro-founded long-run economic growth model with normalized CES technology and endogenous labor- and capital-augmenting technical change driven by purposeful directed R&D investments. It is found that dynamic macroeconomic trade-offs created by arrivals of both types of new technologies may lead to prolonged swings in the labor share due to oscillatory convergence to the balanced growth path as well as stable limit cycles via Hopf bifurcations. Both predictions are broadly in line with the empirical evidence.
Subjects: 
CES
endogenous cycles
factor-augmenting endogenous technical change
labor income share
normalization
R&D
technology menu
JEL: 
E25
E32
O33
O41
ISBN: 
978-92-899-1578-6
Document Type: 
Working Paper

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