New approach drives economic growth by balancing wage rates and demand
The new approach to economic growth in this study looks at how demand and unemployment affect growth, without relying on a simple production function. Instead, it focuses on how conflicts between different groups drive productivity growth and market competition. The study finds that the race between productivity growth and real wages helps drive demand and productivity, while keeping the wage share stable. The researchers also explore the existence and stability of a steady state in this economic model.