Growing through cycles in an infinitely lived agent economy

Kiminori Matsuyama*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

42 Scopus citations


This paper extends the analysis of K. Matsuyama (Econometrica 67 (1999), 335-347) to the case of an infinitely lived representative agent economy. The economy grows endogenously through endogenous fluctuations, perpetually moving back and forth between two phases. In one phase, there is no innovation, the market structure is competitive, and the economy grows solely by capital accumulation. In the other phase, new goods are introduced and the market structure is monopolistic. In the long run, both investment and innovation grow at the same rate, but the economy alternates between the periods of high investment and the periods of higher innovation. Journal of Economic Literature Classification Numbers: E32, O11.

Original languageEnglish (US)
Pages (from-to)220-234
Number of pages15
JournalJournal of Economic Theory
Issue number2
StatePublished - 2001


  • Asynchronous movements of innovation and investment
  • Endogenous fluctuations
  • Endogenous growth

ASJC Scopus subject areas

  • Economics and Econometrics


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