Neoclassical vs. Endogenous Growth Analysis: An Overview

31 Pages Posted: 17 Nov 2012

See all articles by Bennett T. McCallum

Bennett T. McCallum

Carnegie Mellon University - David A. Tepper School of Business; National Bureau of Economic Research (NBER)

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Date Written: 1996

Abstract

The traditional neoclassical theory of economic growth is rich analytically but fails to provide any explanation of steady-state growth in per capita values of output or consumption and cannot plausibly explain actual cross-country growth differences as transitional episodes. Consequently, several types of endogenous growth models, which attempt to account for ongoing per capita growth, have been developed. The likelihood of strictly justifying steady-state growth with any of these is very small, but their insights and predictions appear to be valuable nevertheless.

Suggested Citation

McCallum, Bennett T., Neoclassical vs. Endogenous Growth Analysis: An Overview (1996). FRB Richmond Economic Quarterly, vol. 82, no. 4, Fall 1996, pp. 41-71. Available at SSRN: https://ssrn.com/abstract=2125944

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