Business cycle fluctuations and learning-by-doing externalities in a one-sector model

Hippolyte d'Albis, Emmanuelle Augeraud-Véron and Alain Venditti

Working Papers from HAL

Abstract: We consider a one-sector Ramsey-type growth model with inelastic labor and learning-by-doing externalities based on cumulative gross investment (cumulative production of capital goods), which is assumed, in accordance with Arrow [5], to be a good index of experience. We prove that a slight memory effect characterizing the learning-by-doing process is enough to generate business cycle fluctuations through a Hopf bifurcation. This is obtained for reasonable parameter values, notably for both the elasticity of output with respect to the externality and the elasticity of intertemporal substitution. Hence, contrary to all the results available in the literature on aggregate models, we show that endogenous fluctuations are compatible with a low (in actual fact, zero) wage elasticity of the labor supply.

Keywords: One-sector infinite-horizon model; learning-by-doing externalities; inelastic labor; business cycle fluctuations; Hopf bifurcation (search for similar items in EconPapers)
Date: 2009-11-15
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00432267v1
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://shs.hal.science/halshs-00432267v1/document (application/pdf)

Related works:
Journal Article: Business cycle fluctuations and learning-by-doing externalities in a one-sector model (2012)
Working Paper: Business Cycle Fluctuations and Learning-by-doing Externalities in a One-sector Model (2012)
Working Paper: Business cycle fluctuations and learning-by-doing externalities in a one-sector model (2012)
Working Paper: Business Cycle Fluctuations and Learning-by-doing Externalities in a One-sector Model (2012)
Working Paper: Business cycle fluctuations and learning-by-doing externalities in a one-sector model (2012)
Working Paper: Business Cycle Fluctuations and Learning-by-doing Externalities in a One-sector Model (2012)
Working Paper: Business cycle fluctuations and learning-by-doing externalities in a one-sector model (2012)
Working Paper: Business cycle fluctuations and learning-by-doing externalities in a one-sector model (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:halshs-00432267

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().