The Dynamics of Growth Slowdown in Developed Economies
Özet
Numerous studies have explored the dynamics and long-term effects of economic growth
both theoretically and empirically. In this study, we examine the endogenous sources of
economic growth and try to answer why the long-run growth rates of advanced economies
have experienced secular slowdowns over the last decades. Additionally, we focus on the
U.S. economy, for which we build a complex dynamic general equilibrium model to
simulate and project the trajectory of its primary economic fundamentals over the long
term. Our principal findings exhibit a consistent alignment with empirical data, indicating
a growth slowdown in developed economies. Furthermore, according to these outcomes,
our analysis suggests that the U.S. economy will experience a slowdown in the long run,
establishing a new trend of GDP per capita growth rate of 1.5 per annum.
