The Impact Of Science On Economic Growth And Its Cycles: The Mathematical Dynamics Determined By The Basic Macroeconomic Facts (lecture Notes In Economics And Mathematical Systems)

The author shows that the enormous gap between theory and facts in modern macroeconomics can only be eliminated by nonlinear macroeconomic dynamics with the following special characteristics: First of all, only certain group-theoretical invariants generate the correct growth cycles with irregularly varying lengths, not any stochastic process as usually applied for this purpose. Furthermore, a special extended value function and generalized human capital are needed for a correct representation of scientific and technological innovation. Finally, the correct nonlinear macroeconomic dynamics are not reducible to microeconomics, for both of the above mentioned reasons. Front Matter....Pages I-IX The Macroeconomic Problem....Pages 1-11 Front Matter....Pages 13-13 Canonical Formalism: Basics....Pages 15-34 The Canonical Formalism of Macroeconomics....Pages 35-63 Front Matter....Pages 65-65 The Principle of Economy in Scientific Explanation....Pages 67-71 Growth Paths Determined by Canonical Formalism....Pages 72-84 The Plosser Fact and Other Growth Effects of Savings Rate....Pages 85-104 The Kydland Facts on Leads and Lags in Business Cycles....Pages 105-124 Correlations and Variances over the Ordinary Business Cycles....Pages 125-148 Correlations over Anomalous Business Cycles....Pages 149-171 The Role of Stochastic Shocks in the Business Cycle....Pages 172-195 Back Matter....Pages 196-206 This work shows that the gap between theory and facts in modern macroeconomics can only be elimated by nonlinear macroeconomic dynamics with certain following characteristics.