Economic Growth and Development

  1. The Neoclassical Growth Model: Solow-Swan
    1. Core Assumptions
      1. Aggregate Production Function
        1. Cobb-Douglas Function
          1. Factor Substitutability
            1. Smooth Substitution
            2. Diminishing Marginal Returns to Capital
              1. Declining Productivity
                1. Capital Deepening Effects
                2. Constant Returns to Scale
                  1. Homogeneity of Degree One
                    1. Scale Effects
                    2. Exogenous Technological Progress
                      1. Labor-Augmenting Technology
                        1. Harrod-Neutral Progress
                        2. Perfect Competition
                          1. Factor Price Determination
                            1. Profit Maximization
                            2. Full Employment
                              1. Labor Market Clearing
                                1. Flexible Wages
                              2. The Dynamics of Capital Accumulation
                                1. Investment and Depreciation
                                  1. Gross vs. Net Investment
                                    1. Capital Stock Evolution
                                    2. Capital Deepening vs. Capital Widening
                                      1. Per Worker Capital
                                        1. Extensive Growth
                                        2. The Steady State Equilibrium
                                          1. Long-Run Equilibrium
                                            1. Determinants of the Steady State
                                              1. Stability Properties
                                                1. Transitional Dynamics
                                                  1. Convergence Speed
                                                    1. Half-Life of Convergence
                                                2. The Role of Population Growth
                                                  1. Labor Force Growth
                                                    1. Demographic Factors
                                                      1. Participation Rates
                                                      2. Impact on Per Capita Output
                                                        1. Capital Dilution Effect
                                                          1. Steady State Implications
                                                        2. The Role of Technological Progress
                                                          1. Exogenous Technology
                                                            1. Manna from Heaven
                                                              1. Disembodied Progress
                                                              2. Labor-Augmenting Technological Change
                                                                1. Effective Labor Units
                                                                  1. Balanced Growth Path
                                                                  2. Long-Run Growth with Technology
                                                                    1. Sustained Growth
                                                                      1. Technology as Growth Driver
                                                                    2. Convergence Hypotheses
                                                                      1. Absolute (Unconditional) Convergence
                                                                        1. Beta Convergence
                                                                          1. Sigma Convergence
                                                                          2. Conditional Convergence
                                                                            1. Steady State Differences
                                                                              1. Structural Parameters
                                                                              2. Club Convergence
                                                                                1. Multiple Equilibria
                                                                                  1. Convergence Clubs
                                                                                  2. Empirical Evidence on Convergence
                                                                                    1. Cross-Country Studies
                                                                                      1. Regional Convergence
                                                                                        1. Time Series Evidence
                                                                                      2. Growth Accounting
                                                                                        1. The Solow Residual (Total Factor Productivity)
                                                                                          1. Unexplained Growth
                                                                                            1. Technology Proxy
                                                                                            2. Decomposing Sources of Growth
                                                                                              1. Capital Contribution
                                                                                                1. Labor Contribution
                                                                                                  1. Technology Contribution
                                                                                                    1. Factor Shares
                                                                                                    2. Limitations of Growth Accounting
                                                                                                      1. Measurement Errors
                                                                                                        1. Quality Adjustments
                                                                                                          1. Omitted Factors
                                                                                                        2. Policy Implications and Limitations of the Solow Model
                                                                                                          1. Savings and Investment Policies
                                                                                                            1. Golden Rule of Capital Accumulation
                                                                                                              1. Dynamic Inefficiency
                                                                                                              2. Role of Technology Policy
                                                                                                                1. Exogeneity Problem
                                                                                                                  1. Innovation Incentives
                                                                                                                  2. Criticisms of Exogeneity Assumptions
                                                                                                                    1. Endogenous Technology
                                                                                                                      1. Learning Effects

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                                                                                                                  3. Classical and Early Growth Models

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                                                                                                                  5. Endogenous Growth Theory