— By introducing the growth rate of new-product innovations into the Solow growth model, this study displays how negative technological shocks could occur frequently and thus the production function can explain the economic growth and the business cycles at the same time.
— New products, economic growth, business cycle, technological shock, market saturation.
Xianming Meng is with the University of New England, Armidale, NSW2351 Australia (e-mail: email@example.com).
Cite: Xianming Meng, " An Aggregate Production Function Explaining Negative Technological Shocks," Journal of Economics, Business and Management vol. 1, no. 3, pp. 277-280, 2013.