This study presents a model of economic growth based on saturating demand, where the demand for a good has a certain maximum amount.
\nIn this model, the economy grows not only by the improvement in production efficiency in each sector, but also by the migration of production factors (labor in this model) from demand-saturated sectors to the non-saturated sector.
\nIt is assumed that the production of a brand-new good will begin after all the existing goods are demand-saturated. Hence, there are cycles where the production of a new good emerges followed by the demand saturation of that good.
\nThe model then predicts that should the growth rate be stable and positive in the long run, the above-mentioned cycle must become shorter over time. If the length of cycles is constant over time, the growth rate eventually approaches zero because the number of goods produced grows.
権利
Copyrights 日本貿易振興機構（ジェトロ）アジア経済研究所 / Institute of Developing Economies, Japan External Trade Organization (IDE-JETRO) http://www.ide.go.jp
雑誌名
IDE Discussion Paper
雑誌名(英)
IDE Discussion Paper
巻
283
発行年
2011-03-01
出版者
Institute of Developing Economies (IDE-JETRO)
著者版フラグ
publisher
日本十進分類法
331.19
JEL分類
JEL:O1 - Economic Development
JEL:O11 - Macroeconomic Analyses of Economic Development
JEL:O4 - Economic Growth and Aggregate Productivity
地域/国名
世界、その他
キーワード(LSH)
Economic growth
Economic development
Demand Saturation
A model of economic growth with saturating demand
本文
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