Harrod’s Guaranteed Growth Rate as a Law of Economic Growth: An Empirical Proof
José Reyes Bernal Bellón
Universidad de La Salle
December 30, 2008
Cuadernos de Economía, Vol. 27, No. 49, 2008
In the 1950s, there were important developments in growth theory based on Harrod’s (1939) Post-Keynesian growth model that sought to solve theoretically the problem of instability in this model. However, no literal empirical verification of the model has been done. This article modifies the Harrod model to include technical change and provides empirical proof by means of different methodologies. It concludes that Harrod’s guaranteed growth rate tends to be a law in economic growth theory.
Note: The downloadable document is in Spanish.
Number of Pages in PDF File: 32
Keywords: economics growth, technological change, capital output marginal ratio, marginal propensity to save
JEL Classification: E22, O39, O57Accepted Paper Series
Date posted: January 1, 2010
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