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Diagnosing the Dynamics of Economic Growth

In: Driving Complexity in Economic Development

Author

Listed:
  • Diego Gomez

    (Fundación ECSIM)

  • Sebastian Aparicio

    (Universitat Autònoma de Barcelona
    Universitat Autònoma de Barcelona)

  • David Urbano

    (Universitat Autònoma de Barcelona
    Universitat Autònoma de Barcelona)

Abstract

This chapter introduces a dynamic model capable of considering the effects of time in the labor, goods and services, and investment markets, as an alternative to the general equilibrium model that is usually used in the literature. Through the formulation of this model, the fundamental role of firms is also discovered; through investment decisions (taken depending on the internal rate of return [IRR]) and taking into account internal and external variables, firms generate new ventures, a key driver of economic development.

Suggested Citation

  • Diego Gomez & Sebastian Aparicio & David Urbano, 2023. "Diagnosing the Dynamics of Economic Growth," Springer Books, in: Diego Gomez & Sebastian Aparicio & David Urbano (ed.), Driving Complexity in Economic Development, chapter 5, pages 137-165, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-34386-5_5
    DOI: 10.1007/978-3-031-34386-5_5
    as

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