Abstract
This chapter provides an overview of the literature on neoclassical growth, starting with the simple Solow-Swan model and highlighting the main components of the neoclassical growth process. It considers the assumptions, predictions, and limitations of the Solow-Swan model and discusses several extensions that address some of these limitations and, in particular, those that are unrealistic for a regional growth setting. Several more complex models are presented and discussed, including a model that allows for exogenous technological progress, one that includes a broader definition of capital to also encompass human capital, and one that relaxes the assumption of a closed economy. Finally, the chapter considers a more complex model of neoclassical growth, the Ramsey-Cass-Koopmans model, which incorporates consumer behavior and allows for an endogenously determined savings rate.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Abreu M, De Groot HLF, Florax RJGM (2005) A meta-analysis of β-convergence: the legendary 2%. J Econ Surv 19(3):389–420
Acemoglu D (2009) Introduction to modern economic growth. Princeton University Press, Princeton
Barro RJ, Sala-i-Martin X (2004) Economic growth theory. McGraw-Hill, Boston
Boianovsky M, Hoover KD (2009) The neoclassical growth model and 20th century economics. History Polit Econ 41(Suppl):1–23
Cass D (1965) Optimum growth in an aggregative model of capital accumulation. Rev Econ Stud 32(3):233–240
Ertur C, Koch W (2007) Growth, technological interdependence and spatial externalities: theory and evidence. J Appl Econ 22(6):1033–1062
Fischer MM (2011) A spatial Mankiw-Romer-Weil model: theory and evidence. Ann Reg Sci 47(2):419–436
Koopmans T (1965) On the concept of optimal economic growth. In: The econometric approach to development planning. North Holland, Amsterdam
Mankiw NG, Romer D, Weil DV (1992) A contribution to the empirics of economic growth. Quart J Econ 107(2):407–437
McCann P (2001) Urban and regional economics. Oxford University Press, Oxford
Nijkamp P, Poot J (1998) Spatial perspectives on new theories of economic growth. Ann Reg Sci 32(1):7–37
Ozgen C, Nijkamp P, Poot J (2010) The effect of migration on income growth and convergence: meta-analytic evidence. Papers Reg Sci 89(3):537–561
Ramsey F (1928) A mathematical theory of saving. Econ J 38(152):543–559
Solow RM (1956) A contribution to the theory of economic growth. Quart J Econ 70(1):65–94
Swan TW (1956) Economic growth and capital accumulation. Econ Record 32(2):334–361
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2021 Springer-Verlag GmbH Germany, part of Springer Nature
About this entry
Cite this entry
Abreu, M. (2021). Neoclassical Regional Growth Models. In: Fischer, M.M., Nijkamp, P. (eds) Handbook of Regional Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-60723-7_12
Download citation
DOI: https://doi.org/10.1007/978-3-662-60723-7_12
Published:
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-662-60722-0
Online ISBN: 978-3-662-60723-7
eBook Packages: Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences