Growth theory and welfare analysis in the heterogeneous economy

2014 Fiscal Year Final Research Report

• Project/Area Number: 23730182
• Research Category: Grant-in-Aid for Young Scientists (B)
• Allocation Type: Multi-year Fund
• Research Field: Economic theory
• Research Institution: Osaka University (2014); Tohoku University (2011-2013)
• Principal Investigator: HORII Ryo 大阪大学, 社会経済研究所, 教授 (90324855)
• Project Period (FY): 2011-04-28 – 2015-03-31
• Keywords: 経済成長 / 研究開発 / 非均質性

Outline of Final Research Achievements

In standard neoclassical growth models, the process of economic growth is represented by the increase in the production of homogenous final goods. However, the real economy is not homogeneous but rather consists of heterogeneous goods, technologies, and production factors. Thus, this research project aimed to build a set of growth theories that endogenously explain various shifts in the composition of a heterogeneous economy through economic growth; e.g., the shift of demand from older goods to newer goods, the shift of production firms from older technologies to newer technologies, and the shift of the use of production factors from mostly unskilled workers to more skilled ones. This research project analyzed how these shifts occur and their effects on the measured rate of economic growth in the SNA, as well as the effects on the welfare of consumers.

Free Research Field

マクロ経済学