TITLE:
A Kind of Neither Keynesian Nor Neoclassical Model (5): The Path of Economic Growth
AUTHORS:
Zhan Zhan, Ming’an Zhan
KEYWORDS:
Cobb-Douglas Function, Growth Path, Unit Resource Output
JOURNAL NAME:
Open Access Library Journal,
Vol.4 No.4,
April
26,
2017
ABSTRACT: Traditional macroeconomic theory is difficult to
analyze the long-term growth and short-term decisions of output in a unified
model. In this paper, the concept of “unit resource output” is proposed by using
the difference of production factors combination on different rays in Cobb-Douglas
function, and its maximization condition is derived according to algebraic
principle. And then we use this condition to
explain the reason why the distribution parameter α in the Cobb-Douglas function is growing continuously in the US
statistical data and predict the evolution path of the factor combination in
the growth of the output. Finally, this paper compares the important
differences between our model and the Solow model.