Theoretical and Applied Economics
No. 2 / 2018 (615), Summer
How to build an economy free of recession and stagnation: results from a multi-commodity macro model
University of New England, Australia
Abstract. Aggregate macro models used in existing studies have insufficient details to shed any light on the market saturation phenomenon and thus have failed to uncover the fundamental cause of economic recessions. A multi-commodity macroeconomic model is constructed reflecting three simple but revolutionary axioms, which summarize the important but often overlooked facts in an economy. The results from the model shows that, without product innovation, the economy will reach a consumption/income ceiling so that recessions are inevitable. In order to build an economy free of recession, the paper calls for stimulating innovation through a thorough revision of the current patent laws.
Contents
Studying banking performance from an accounting perspective: Evidence from Europe
Corruption, governments’ debts, trade, and global growth
Innovation – trends and patterns at Romanian firms
How to build an economy free of recession and stagnation: results from a multi-commodity macro model
Analyzing the employment rate of the population, unemployment and vacancies in the economy
An implicit model of adjustment costs in differential input demand systems
Diversity and proportionality, challenges or opportunities for the European banking sector?
A competitive economy as the path to future prosperity: Comparative analysis of selected European countries
Studying the political economy of reforms: The Greek case, 2010-2017
Analysis of the evolution of the number of pensioners and pensions in Romania
Inflation unemployment dynamics in Hungary – A structured cointegration and vector error correction model approach
Are defence expenditures the reasons of foreign debts in Turkey?
Exports, imports and economic growth in India: Evidence from cointegration and causality analysis
The role of economic growth and energy consumption on CO2 emissions in E7 countries
Which comes first – savings or growth? Time series evidence from ECOWAS countries