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Modeling growth: exogenous, endogenous and Schumpeterian growth models

Modeling growth: exogenous, endogenous and Schumpeterian growth models

Ugur, Mehmet ORCID: 0000-0003-3891-3641 (2016) Modeling growth: exogenous, endogenous and Schumpeterian growth models. [Working Paper]

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Abstract

In this lecture, I review the theoretical origins of the empirical growth models. I begin with the Solow and AK models informed by neoclassical theory. I demonstrate that both models do not make an explicit distinction between capital accumulation and technological progress. They just lump together the physical and human capital. Then I discuss the Schumpeterian growth models with creative destruction and institutions (particularly democracy as a meta-institution). I demonstrate that the Schumpeterian models can address a wider range of questions – particularly those that cannot be addressed satisfactorily by neoclassical models. I conclude by arguing for innovations in growth modeling – particularly for innovations that involve explicit incorporation of product-market competition and non-linearities in the relationship between innovation and growth.

Item Type: Working Paper
Uncontrolled Keywords: Endogenous growth, Capital accumulation, Technological progress, Growth models, Innovation
Subjects: H Social Sciences > HD Industries. Land use. Labor
Faculty / Department / Research Group: Faculty of Business
Faculty of Business > Greenwich Political Economy Research Centre (GPERC)
Last Modified: 09 Feb 2017 12:07
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
URI: http://gala.gre.ac.uk/id/eprint/14665

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