Author(s)

Zhan Zhan¹, Ming’an Zhan²

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

Traditional macroeconomic theory is difficult to analyze the long-term growth and short-term decisions of output in a unified model. In this paper, the concept of “unit resource output” is proposed by using the difference of production factors combination on different rays in Cobb-Douglas function, and its maximization condition is derived according to algebraic principle. And then we use this condition to explain the reason why the distribution parameter α in the Cobb-Douglas function is growing continuously in the US statistical data and predict the evolution path of the factor combination in the growth of the output. Finally, this paper compares the important differences between our model and the Solow model.

Cobb-Douglas Function, Growth Path, Unit Resource Output

Zhan, Z. and Zhan, M. (2017) A Kind of Neither Keynesian Nor Neoclassical Model (5): The Path of Economic Growth. Open Access Library Journal, 4, 1-13. doi: 10.4236/oalib.1103525.