A Growth Cycle

Presented here is a starkly schematized and hence quite unrealistic model of cycles in growth rates. This type of formulation now seems to me to have better prospects than the more usual treatment of growth theory or of cycle theory, separately or in combination. Many of the bits of reasoning are common to both, but in the present paper they are put together in a different way. The following assumptions are made for convenience: (1) steady technical progress (disembodied); (2) steady growth in the labour force; (3) only two factors of production, labour and ‘capital’ (plant and equipment), both homogeneous and non-specific; (4) all quantities real and net;