 The Timescale of Economic Model How Long is the Long Run?Chapter 19 in Readings in the Theory of Growth, 1971, pp 248-263 from Palgrave Macmillan Abstract: Abstract Although models of economic growth have been intensively studied in recent years, relatively little attention has been given to the underlying timescale of these models.2 While in many cases we know how the major variables of the models change over time, in very few cases do we know how quickly they will change. Yet the speed of change is a prediction of the model, and by examining this we have a further test of the model’s properties. For example, in many cases it is shown that all paths converge to a long-run equilibrium, but we also want to know how soon the paths will reach the vicinity of this equilibrium. The speed of convergence makes a great deal of difference to the way in which we think about the model. Alternatively, where a model gives rise to oscillations, we need to have some idea as to their probable period. If we throw away information about the time dimension, we are reducing still further our limited understanding of the relationship between these models and the real world. Keywords: Real Wage; Technical Progress; Capital Good; Capital Share; Balance Growth Path (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-15430-2_19 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-15430-2_19 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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