Advertisement

Neoclassical Regional Growth Models

  • Maria Abreu
Reference work entry

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.

Keywords

Human Capital Gross Domestic Product Capital Stock Technological Progress Saving Rate 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Abreu M, De Groot HLF, Florax RJGM (2005) A meta-analysis of β-convergence: the legendary 2%. J Econ Surv 19(3):389–420CrossRefGoogle Scholar
  2. Acemoglu D (2009) Introduction to modern economic growth. Princeton University Press, PrincetonGoogle Scholar
  3. Barro RJ, Sala-i-Martin X (2004) Economic growth theory. McGraw-Hill, BostonGoogle Scholar
  4. Boianovsky M, Hoover KD (2009) The neoclassical growth model and 20th century economics. History Polit Econ 41 (Supplement):1–23CrossRefGoogle Scholar
  5. Cass D (1965) Optimum growth in an aggregative model of capital accumulation. Rev Econ Stud 32(3):233–240CrossRefGoogle Scholar
  6. Ertur C, Koch W (2007) Growth, technological interdependence and spatial externalities: theory and evidence. J Appl Economet 22(6):1033–1062CrossRefGoogle Scholar
  7. Fischer MM (2011) A spatial Mankiw-Romer-Weil model: theory and evidence. Ann Reg Sci 47(2):419–436CrossRefGoogle Scholar
  8. Koopmans T (1965) On the concept of optimal economic growth. In: The econometric approach to development planning. North Holland, AmsterdamGoogle Scholar
  9. Mankiw NG, Romer D, Weil DV (1992) A contribution to the empirics of economic growth. Quart J Econ 107(2):407–437CrossRefGoogle Scholar
  10. McCann P (2001) Urban and regional economics. Oxford University Press, OxfordGoogle Scholar
  11. Nijkamp P, Poot J (1998) Spatial perspectives on new theories of economic growth. Ann Reg Sci 32(1):7–37CrossRefGoogle Scholar
  12. Ozgen C, Nijkamp P, Poot J (2010) The effect of migration on income growth and convergence: meta-analytic evidence. Papers Reg Sci 89(3):537–561CrossRefGoogle Scholar
  13. Ramsey F (1928) A mathematical theory of saving. Econ J 38(152):543–559CrossRefGoogle Scholar
  14. Solow RM (1956) A contribution to the theory of economic growth. Quart J Econ 70(1):65–94CrossRefGoogle Scholar
  15. Swan TW (1956) Economic growth and capital accumulation. Econ Record 32(2):334–361CrossRefGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  1. 1.University of CambridgeCambridgeUK

Personalised recommendations