Arvid Aulin Book order

Focusing on the interplay between economic growth and human capital, this book presents a new framework that integrates dynamic economics with the analysis of business cycles and long-term development. It posits that economic growth is fundamentally linked to the advancement of human capital and scientific knowledge, advocating for quality education in hard sciences as a key policy objective. Additionally, it introduces a novel causal structure in economics and offers insights into nonlinear causality, while proposing enhancements to national accounting and input-output dynamics to incorporate human capital metrics.

The author shows that the enormous gap between theory and facts in modern macroeconomics can only be eliminated by nonlinear macroeconomic dynamics with the following special characteristics: First of all, only certain group-theoretical invariants generate the correct growth cycles with irregularly varying lengths, not any stochastic process as usually applied for this purpose. Furthermore, a special extended value function and generalized human capital are needed for a correct representation of scientific and technological innovation. Finally, the correct nonlinear macroeconomic dynamics are not reducible to microeconomics, for both of the above mentioned reasons.

This book deals with factors affecting economic growth in knowledge-based societies. It is shown that the interaction between material and nonmaterial values is the ultimate source of all economic growth including business cycles. The model developed predicts the quantitative facts concerning the business cycles better than the conventional real-cycle models. It also produces, besides the balanced-growth path, another growth path whose existence is verified by empirical facts. The results give strong evidence of the economic relevance of nonmaterial values. They also prompt a new vision of the stochastic elements in the business cycles. Nonmaterial values are analysed, and their interaction with economic growth is also illustrated in terms of an entropy formalism of historical analysis.