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No.101(2021/09) >

Title :Business Cycles and Unemployment with Growth Through Creative Destruction
Authors :Hori, Katsuhiko
Authors alternative :堀, 勝彦
Issue Date :30-Sep-2021
Abstract :This paper examines relationships among economic growth, business cycles, and unemployment in a general-equilibrium model. The model views creative destruction as a major source of business cycles, as well as of long-term growth. I show that the expected growth rate negatively relates to the amplitude of business cycles, but positively relates to the expected unemployment rate. I also present an alternative view to competitive-equilibrium business cycle models on the relationship between employment and productivity. Contrary to competitive-equilibrium business cycle models, this model shows that positive permanent shocks cause unemployment, but positive transitory shocks lead to full employment. These theoretical results are consistent with empirical evidence. Finally, I show that an increase in the expected growth rate has a negative connection with the frequency of recessions.
Type Local :紀要論文
ISSN :0557-580X
Publisher :琉球大学国際地域創造学部
URI :http://hdl.handle.net/20.500.12000/49847
Citation :琉球大学経済研究=Ryukyu University Economic Review no.101 p.33 -53
Appears in Collections:No.101(2021/09)

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