On the Approximation of Functions of a Real Variable and on by Charles de la Vallee Poussin

By Charles de la Vallee Poussin

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Chapter 4 introduces an extended Keynesian model of demand-determined growth in which outcomes are attributed to the state of AD and not to forces on the supply side, not only when there are unemployed resources but also under full employment conditions. Chapter 5 discusses institutions and their functions, and considers both institutions and the distribution of power as determinants of economic performance. These ideas are illustrated by several well-known empirical studies, to which we add our own econometric investigation.

1) in which A is an index of technological progress assumed to grow at rate g, K is the capital stock and L is the available supply of labour measured in ‘natural’ units and assumed to grow at rate n. In this production function, technological progress augments the natural growth of the labour supply, and the supply of labour in ‘efficiency’ units grows at rate (gϩ n). 2) The stylized facts 25 where a dot indicates the geometric rate of growth of each variable. Next assume saving, S, is a fixed share of output, S ϭsQ, which automatically flows into investment, I, so that Sϭ I with I ϭdK/dt and therefore KϭI/Kϭ sQ/K.

Since 1973, unemployment rates have risen and growth rates of GDP and per capita income have fallen compared with their golden age rates. As stated in the introduction to part I, determining the causes of these alternating episodes is a primary task of the study. 2 Comparative growth and unemployment performance in the golden age While the general pattern of macroeconomic development was similar, there were differences between countries in their growth and unemployment records. For example, a notable feature of growth performance during the golden age was the very rapid growth of productivity in most of the developed capitalist economies.

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