Summary: The paper reconsiders models of AS-AD growth from a disequilibrium perspective which in fact is easier to treat than AS-AD which admits disequilibrium in the labor market but not in the product market. We assume sluggish wage and price adjustments and a Metzlerian inventory dynamics. We obtain fluctuating rates of capacity utilization for both labor and capital. For exogenous productivity growth, the model implies six laws of motion. Stability, proved for sluggish adjustment speeds, gets lost through Hopf-bifurcations, implying the existence of attracting or repelling periodic motions close to such bifurcation values. We show that these results remain valid for endogenous growth, with new features concerning the production of technological change (which is subject to hysteresis).
For the entire collection see [Zbl 0956.00059].