A DYNAMIC-MODEL OF THE FIRM INCLUDING KEYNESIAN AND SCHUMPETERIAN ELEMENTS

In this paper we intend to present a dynamic model of the firm which contains Keynesian as well as Schumpeterian elements. The starting point of our analysis is an inventory model first presented by FEICHTINGER and HARTL [19851 to take account of the Keynesian idea of rationing in the goods market. Into this model we integrate technical change as a key element of Schumpeterian theory. Local stability analysis shows that transitory or permanent oscillations of the economic variables may then result, depending on the parameter values of the underlying functions. (JEL: O3)