Keynesian growth models

Abstract

As is well known, the birth of modern growth theory that took place nearly fifty years ago in the work of Harrod [74] stemmed from the desire to extend Keynes’s aggregate demand theory [98] for the short period into the long period. Harrod addressed himself especially to the problems of sustaining investment demand and thereby bringing more into focus the trend movements of the capital stock and national income rather than the prevalent elaborations on their cyclical movements.