Neoclassical Regional Growth Models

  • Maria AbreuEmail author
Living reference work entry


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.


Human capital Gross domestic product Capital stock Technological progress Saving rate 


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© Springer-Verlag GmbH Germany, part of Springer Nature 2019

Authors and Affiliations

  1. 1.University of CambridgeCambridgeUK

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