Journal of Economic Perspectives: Vol. 8 No. 1 (Winter 1994)
Print Article Summary Export Citation
Sign up for Email Alerts Follow us on Twitter
Perspectives on Growth Theory
Solow, Robert M. 1994. "Perspectives on Growth Theory." Journal of Economic Perspectives, 8(1): 45-54.
This essay relates recent developments in growth theory to problems and ideas that first engaged R. F. Harrod, E. Domar, and their neoclassical successors. The body of 'new growth theory' began by finding special ways to assume that there are constant returns to capital. It is shown that this is a very nonrobust assumption, thus not a good basis for growth theory. More promising is the attempt to create a genuinely endogenous theory of the process of innovation. This notion has always been present in the literature or just beneath the surface. Current ideas, for all their ingenuity, may be too mechanical.
Article Full-Text Access
Full-text Article (Complimentary)
Solow, Robert M. (MIT)
O40: Economic Growth and Aggregate Productivity: General
| Login to post a comment