A Kind of Neither Keynesian nor Neoclassical Model (1): The Fundamental Equation - Open Access Library Journal

OALibJ > Vol.3 No.11, November 2016

Open Access Library Journal

Volume 3, Issue 11 (November 2016)

ISSN Print: 2333-9705 ISSN Online: 2333-9721

Google-based Impact Factor: 0.73 Citations

A Kind of Neither Keynesian nor Neoclassical Model (1): The Fundamental Equation ()

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DOI: 10.4236/oalib.1103207 723 Downloads 1,534 Views Citations

Author(s)

Ming’an Zhan¹, Zhan Zhan²

Affiliation(s)

¹Yunnan University, Kunming, China.
²Westa College, Southwest University, Chongqing, China.

ABSTRACT

This paper is different from the existing macroeconomic theory. It derives the relationship between the various macroeconomic variables from the Cobb-Douglas function, and uses statistical data in United States to verify these equations. We find that the Cobb-Douglas function is obtained in the case that the marginal output is not 0, therefore it is a function with dynamic properties. On this basis, we use the difference between the compound output and simple output to determine the incremental output of a period, and its relationship with capital, interest rate, investment and other variables. These relations not only deny the premise of Keynesian theory, but also because the proof of the investment is not equal to the incremental capital, leaving the investment, output growth, business cycle and other neoclassical theory crisis.

KEYWORDS

Cobb-Douglas Production Function, Output, Interest Rate, Investment

Share and Cite:

Zhan, M. and Zhan, Z. (2016) A Kind of Neither Keynesian nor Neoclassical Model (1): The Fundamental Equation. Open Access Library Journal, 3, 1-16. doi: 10.4236/oalib.1103207.

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[2]	A Kind of Neither Keynesian Nor Neoclassical Model (9): Equilibrium Between Quantity and Quality of Resources Utilization
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[3]	A Kind of Neither Keynesian Nor Neoclassical Model (7): The Cause of the Financial Crisis
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[4]	A Kind of Neither Keynesian Nor Neoclassical Model (3): The Decision of Inflation
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[5]	A Kind of Neither Keynesian Nor Neoclassical Model (4): The Nature of Philips Curve
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[6]	A Kind of Neither Keynesian Nor Neoclassical Model (6): The Ending State of Economic Growth
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[7]	A Kind of Neither Keynesian Nor Neoclassical Model (2): The Business Cycle
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