A Dynamic Aggregative Model

  title={A Dynamic Aggregative Model},
  author={James Tobin},
  journal={Journal of Political Economy},
  pages={103 - 115}
  • J. Tobin
  • Published 1 April 1955
  • Economics
  • Journal of Political Economy
Yale University C ONTEMPORARY theoretical models of the business cycle and of economic growth typically possess two related characteristics: (1) they assume production functions that allow for no substitution between factors, and (2) the variables are all real magnitudes; monetary and price phenomena have no significance. Because of these characteristics, these models present a rigid and angular picture of the economic process: straight and narrow paths from which the slightest deviation spells… 
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