Endogenous technological change and interest rate in the dynamics of globalization

Authors

  • Mario Eduardo Firmenich Universitat Oberta de Catalunya, Spain

DOI:

https://doi.org/10.15359/eys.23-54.3

Keywords:

endogenous growth, globalization, interest rate, marginal product of capital., marginal product of capital

Abstract

Global economic growth has been understood in recent decades from the neoclassical perspective of the New Growth Theory, which has a seminal support in Romer (1990). In this paper, firstly, the Romer model (1990) is analyzed and it is proved that some neoclassical assumptions generate mathematical inconsistencies.

 

Secondly, to avoid self-contradictory results, the questioned assumptions are replaced by non-neoclassical theoretical definitions and concepts, which implies constructing a new transformed model. In addition, some stylized facts of globalization are defined and the explanatory capacity of the transformed model is tested, by interpreting such facts with this new perspective.

 

The conclusion is that the explanatory capacity improves if the theoretical model has the following properties: a) there is no endogenous return to balanced growth, b) there is no global automatic convergence in per capita income; c) money and interest rate, defined in fiduciary monetary units, are managed politically; d) temporary preferences depend on expectations about the future; and e) financial globalization is not a competitive market.

Author Biography

Mario Eduardo Firmenich, Universitat Oberta de Catalunya

Doctor en Economía con Especialidad en Teoría Económica, Universidad de Barcelona, España. Profesor Colaborador de los Estudios de Economía y Empresa, Universitat Oberta de Catalunya (UOC), España.

References

Blanchard, O. (2002). Macroeconomía. Madrid: Prentice Hall.

Barro, R. & Sala-i-Martín, X. (2009). Modelos de crecimiento con optimización del consumidor (el modelo de Ramsey). En Reverte (Ed),Crecimiento económico (pp. 85–142). Barcelona, España. Recuperado de https://books.google.es/books?isbn=8429126147

Fisher, I. (1907). The Rate of Interest: Its nature, determination and relation to economic phenomena. New York: The Macmillan Co. Recuperado de https://books.google.es/books?id=zEJZAAAAYAAJ

Fisher, I. (1930). The Theory of Interest As Determined by Impatience to Spend Income and Opportunity to invest it. En A.M. Kelley(Eds), reimpresión del Editor David Rehak). Recuperado de https://books.google.co.cr/books/about/The_theory_of_interest.html?id=4J5FAQAAIAAJ&redir_esc=y

Jetin, B. (2005). Un impuesto contra la especulación con divisas. En La tasa Tobin – Un arma para detener la expoliación financiera (Trad. Griselda Piñero). En Agencia Latinoamericana de Información y Análisis Dos (Eds). La taxe Tobin et la solidarité entre les nations (pp. 19–63). Recuperado de https://livre.fnac.com/a1270301/B-Jetin-La-taxe-Tobin-et-la-solidarite-entre-les-nations

Krugman, P. y Wells, R. (2016). Crecimiento económico a largo plazo. En Reverté (Ed), Macroeconomía(pp. 241–273). Recuperado de https://www.marcialpons.es/autores/krugman-paul-r/1019456/

Maddison, A. (2008). Statistics on World Population, GDP, and Per Capita GDP, 1-2008 AD. En Historical Statistics. University of Groningen. Recuperado de http://www.ggdc.net/maddison/oriindex.htm

Mankiw, N., Romer, D. & Weil, D. (1992). A Contribution to the Empirics of Economic Growth. En The Quarterly Journal of Economics, 2(107), 407 – 437. Doi: https://doi.org/10.2307/2118477

Olivera, J. (1982). Dinero Pasivo Internacional y Hegemonía Monetaria. En Desarrollo económico, Journal Article: Instituto de Desarrollo Económico Y Social. 89(23), 3-9. Doi: https://doi.org/10.2307/3466444

Ramsey, F. (1928). A Mathematical Theory of Saving. En The Economic Journal, Journal Article 152(38), 543 -559. Doi: https://doi.org/10.2307/2224098

Romer, D. (1996). Advanced Macroeconomics. New York: MC Graw-Hill Publishers. Recuperado de https://books.google.es/books?id=2adfDwAAQBAJ

Romer, P. (1990). Endogenous Technological Change. En Journal of Political Economy, 5(98), S71-S102. Doi: https://doi.org/10.1086/261725

Romer, P. (1991). El cambio tecnológico endógeno. El Trimestre Económico, 231(58) ,441-480. Recuperado de https://www.jstor.org/stable/23397462?seq=1#page_scan_tab_contents

Sraffa, P. (1960). Production of commodities by means of commodities: Prelude to a Critique of Economic Theory. Cambridge: The Syndics of Cambridge University Press. https://books.google.es/books?id=SJw8AAAAIAAJ&hl=es&source=gbs_navlinks_s

Taylor, J. (1993). Discretion and Policy Rules in Practice. Carnegie-Rochester Conference Series on Public Policy, (39), 195-214. Doi: https://doi.org/10.1016/0167-2231(93)90009-L

Varian, H. (1992). El tiempo. En Antoni Bosch (Ed), Análisis Microeconómico. (pp. 421–431). Barcelona, España. Recuperado de https://books.google.es/books?isbn=8485855639

Published

09/17/2018

How to Cite

Endogenous technological change and interest rate in the dynamics of globalization. (2018). Economía Y Sociedad, 23(54), 24-49. https://doi.org/10.15359/eys.23-54.3

Issue

Section

Articles (Arbitrated section)

How to Cite

Endogenous technological change and interest rate in the dynamics of globalization. (2018). Economía Y Sociedad, 23(54), 24-49. https://doi.org/10.15359/eys.23-54.3

Comentarios (ver términos de uso)

Similar Articles

1-10 of 57

You may also start an advanced similarity search for this article.