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Abstract

Vol. 68, No. 4, pp. 289-302 (2017)

“Connecting Business Cycle Research and Endogenous Growth Research: A Review and an Application to the Japanese Economy”
Ryo Jinnai (Institute of Economic Research, Hitotsubashi University)

This paper reviews an emerging research integrating business cycle models and endogenous growth models. After a brief review of the historical background, I discuss selected results obtained from my own research. Using a model with bubbles, I discuss the relationship between growth rates of the economy, the level of financial development, and the existence of bubbles. The model's implications are broadly consistent with the Japanese economy, i.e., high growth with a real estate bubble in the 80s, a severe recession after the bubble collapse in the 90s, and the subsequent meager growth known as Japan's lost decades.