Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/67420
Authors: 
Thompson, Maria
Year of Publication: 
2008
Citation: 
[Journal:] The Open Economics Journal [ISSN:] 1874-9194 [Publisher:] Bentham Open [Place:] Sharjah [Volume:] 1 [Year:] 2008 [Pages:] 25-36
Abstract: 
The theoretical richness and variety of the new growth literature can make it difficult to capture the essence of growth models. With this paper, we wish to provide one possible integrating view of the nature of the growth generating processes. Revisiting the models that constitute the core of growth theory, we expose analytically the main mechanisms through which long-run growth can be delivered. Models that contemplate physical capital accumulation generate long-run growth through the attainment of a nondeclining marginal productivity of capital. One mechanism for achieving this entails the introduction of technological progress; another mechanism involves the inclusion of human capital accumulation; and a third method relies on the elimination from the production function of the diminishing returns to capital feature. The foundational models that classically represent each of these mechanisms are reviewed in an analytical and integrating perspective. Some growth models do not contemplate physical capital and hence obtain long-run growth without generating a nondeclining marginal productivity of capital. We look into two reference models of this nature.
Subjects: 
non-diminishing returns to capital
economic growth
research & development
human capital accumulation
inada conditions.
JEL: 
O3
O4
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Article
Appears in Collections:

Files in This Item:
File
Size
247.72 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.