23 , 2015-12-28 , Faculty of economics, university of toyama
Hoover (2008) developed an empirical test with respect to an implication from Harrod (1939)’s dynamic theory. More specifically, the gross domestic product (GDP) gap should be inversely related to the difference between the natural and proper warranted rate of growth. I call this hypothesis the Hoover curve. Hoover derived a downward-sloping regression line of the U.S. economy during the period 1930-2005. In this paper I discuss the Harrodian dynamics of economic growth and show a Hoover curve with a structural change in the Japanese economy during the period 1957-2009.