Dialectics of the Neoclassical Growth Model: Implications for Economic Growth
Unizik Journal of Economic Studies, 10(1), 95-104
9 Pages Posted: 7 Feb 2019
Date Written: March 10, 2013
The first wide-ranging attempt at thought-provoking growth processes produced the exogenous growth model otherwise known and referred to as the neoclassical growth model. It assumes amongst others, a diminishing rate of returns to physical capital in the production process as well as erogeneity of population growth and technological change. This paper takes a dialectical look at the neoclassical growth model and pays particular attention to the implications in the presence of changes in growth-investment parameters: depreciation rate, population growth rate and the growth rate of savings.
Keywords: economic growth, gross domestic product, neoclassical growth model, steady state
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