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AK Type Production Function in DSGE Model

Author

Listed:
  • Masaya Yasuoka

    (Kwansei Gakuin University)

  • Minoru Hayashida

    (The University of Kitakyushu)

  • Ryoichi Namba

    (Chubu Region Institute for Social and Economic Research)

  • Hiroyuki Ono

    (Toyo University)

Abstract

Some DSGE (Dynamic Stochastic General Equilibrium) models include no consideration of long-run economic growth. Our paper presents consideration of a DSGE model with economic growth in the long run. As shown by the data, economic growth continues in terms of a long span. Therefore, we consider that it is appropriate to examine short-run and long-run policy effects on macroeconomic variables in a model in which long-run economic growth continues. The contribution represented by our paper is the description of the simple endogenous growth DSGE model. Although there exist some related papers about endogenous growth DSGE models, our setting is a very simple DSGE model, showing the ease of setting a DSGE model with endogenous growth.

Suggested Citation

  • Masaya Yasuoka & Minoru Hayashida & Ryoichi Namba & Hiroyuki Ono, 2023. "AK Type Production Function in DSGE Model," Discussion Paper Series 246, School of Economics, Kwansei Gakuin University.
    • Handle: RePEc:kgu:wpaper:246
    as

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    File URL: http://192.218.163.163/RePEc/pdf/kgdp246.pdf
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    References listed on IDEAS

    as
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    2. Moran, Patrick & Queralto, Albert, 2018. "Innovation, productivity, and monetary policy," Journal of Monetary Economics, Elsevier, vol. 93(C), pages 24-41.
    3. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 103-126, October.
    4. Grossman, Gene M. & Yanagawa, Noriyuki, 1993. "Asset bubbles and endogenous growth," Journal of Monetary Economics, Elsevier, vol. 31(1), pages 3-19, February.
    5. Calvo, Guillermo A., 1983. "Staggered prices in a utility-maximizing framework," Journal of Monetary Economics, Elsevier, vol. 12(3), pages 383-398, September.
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    7. Greenwood, Jeremy & Hercowitz, Zvi & Huffman, Gregory W, 1988. "Investment, Capacity Utilization, and the Real Business Cycle," American Economic Review, American Economic Association, vol. 78(3), pages 402-417, June.
    8. Queralto, Albert, 2020. "A model of slow recoveries from financial crises," Journal of Monetary Economics, Elsevier, vol. 114(C), pages 1-25.
    9. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    DSGE model; Endogenous growth;

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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