TITLE:
Generalized Four-Dimensional Scientific CDR Economic Growth Model: Expected Value, Average, and Limits to Growth
AUTHORS:
Dennis Ridley, Felipe Llaugel
KEYWORDS:
Capitalism, Democracy, Rule of Law, Economic Growth
JOURNAL NAME:
Theoretical Economics Letters,
Vol.12 No.3,
June
30,
2022
ABSTRACT: The parsimonious
three-dimensional capitalism, democracy, rule of law (CDR)
growth model shows that real per capita gross domestic product (GDP) adjusted
for purchasing power parity (GDPppp) is explained almost entirely by only three
intangible variables. It is global time invariant. That is, after adjusting for
factors of production, capital to GDPppp conversion is the same everywhere in
the world, determined by the physical and chemical laws of nature. This paper
extends the three-dimensional depiction of the CDR economic growth model to a
four-dimensional depiction on a bubble graph, where the bubble size represents
GDPppp. The scientific long run expected value of GDPppp growth rate and the
limits to growth are derived for the first time. The CDR model is the first and
only scientific economic growth model. It places growth economics on a sound
scientific footing.