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A note on the influence of saving behaviors on economic growth

F. Grassetti, G. Hunanyan, C. Mammana and E. Michetti

Metroeconomica, 2019, vol. 70, issue 3, 442-457

Abstract: The Kaldor model describes the dynamics of economic growth over time. Many works showed that a large variety of qualitative dynamics can be produced depending on the economic assumptions. This work provides conditions to mark boundaries during boom and bust cycles, investigating how saving behaviors of workers and shareholders and elasticity of substitution between capital and labor influence the growth dynamics of non‐developed, developing and developed countries considering general and specific technologies of production. The results obtained can be used by policy‐makers to increase the lower level an economy can reach during boom and bust periods and reduce fluctuations.

Date: 2019
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Handle: RePEc:bla:metroe:v:70:y:2019:i:3:p:442-457