How to build an economy free of recession and stagnation: results from a multi-commodity macro model
Additional contact information
Samuel Meng: University of New England, Australia
Theoretical and Applied Economics, 2018, vol. XXV, issue 2(615), Summer, 69-104
Aggregate macro models used in existing studies have insufficient details to shed any light on the market saturation phenomenon and thus have failed to uncover the fundamental cause of economic recessions. A multi-commodity macroeconomic model is constructed reflecting three simple but revolutionary axioms, which summarize the important but often overlooked facts in an economy. The results from the model shows that, without product innovation, the economy will reach a consumption/income ceiling so that recessions are inevitable. In order to build an economy free of recession, the paper calls for stimulating innovation through a thorough revision of the current patent laws.
Keywords: economic recessions; multi-commodity macro model; product innovation; patent laws; economic growth. (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:agr:journl:v:2(615):y:2018:i:2(615):p:69-104
Access Statistics for this article
Theoretical and Applied Economics is currently edited by Marin Dinu
More articles in Theoretical and Applied Economics from Asociatia Generala a Economistilor din Romania - AGER Contact information at EDIRC.
Bibliographic data for series maintained by Marin Dinu ().