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Profit Principles and Endogenous Growth : Incorporating a Keynesian Perspective into Solow Swan Model

open access: yesProfit Principles and Endogenous Growth : Incorporating a Keynesian Perspective into Solow Swan Model
application/pdf J. M. Keynes suggests the importance of animal spirits in economic activities. Animal Spirits, formally expressed by profit principle, has been well known as a source of business fluctuations. In this paper, incorporating the profit principle into the Solow Swan model, we construct an endogenous growth model.
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A ’Jump’ in the Stochasticity of the Solow-Swan Growth Model. [PDF]

open access: possible, 2015
We characterize ’Solow-Swan’ economic growth model in a stochastic environment. Our interest basically lies in modelling arrival of uncommon or stochastic shocks in both physical capital and labour, introducing discontinuities in the growth of these variables.
Claude Diebolt   +2 more
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