Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/297459 
Year of Publication: 
2020
Citation: 
[Journal:] Contemporary Economics [ISSN:] 2300-8814 [Volume:] 14 [Issue:] 1 [Year:] 2020 [Pages:] 73-89
Publisher: 
University of Finance and Management in Warsaw, Faculty of Management and Finance, Warsaw
Abstract: 
Luigi Barone's famous curve offers an excellent framework for the study of the microeconomic and macroeconomic implications of innovation and imitation. However, neither Barone nor his epig- ones have been able to sufficiently "exploit" his contribution to date. Complementing his analysis of supply (covering unit costs and marginal costs of production) to the forces of aggregate demand provided by the macroeconomic aggregate demand-aggregate supply model (AS-AD) analysis would be required in order to identify the determinants of the equilibrium price level in the econ- omy. Moreover, a dynamic interpretation (provided by an inhomogeneous difference equation of the second order) of Barone's key economic growth factors (innovation and imitation) makes it easier to identify the cyclical properties of the macroeconomic price changes. These cyclical price movements have proven to be empirically relevant in the case of Germany (2000-2017), while patent record (as an indicator for the occurrence of innovation) appears to follow a random walk (Germany, 2000-2017).
Subjects: 
Innovation
imitation
Barone's Curve
static and dynamic modeling of macroeconomic price (change) formation
JEL: 
B31
B22
E32
O31
O11
O47
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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