Abstract
This chapter introduces a dynamic model capable of considering the effects of time in the labor, goods and services, and investment markets, as an alternative to the general equilibrium model that is usually used in the literature. Through the formulation of this model, the fundamental role of firms is also discovered; through investment decisions (taken depending on the internal rate of return [IRR]) and taking into account internal and external variables, firms generate new ventures, a key driver of economic development.
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Gomez, D., Aparicio, S., Urbano, D. (2023). Diagnosing the Dynamics of Economic Growth. In: Driving Complexity in Economic Development. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-34386-5_5
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