Psychology Dictionary of ArgumentsHome
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| Economic growth: Economic growth is the increase in the production of goods and services in an economy over a period of time. It is typically measured as a percentage change in real gross domestic product (GDP), which is the total value of all goods and services produced in a country in a given year, adjusted for inflation. See also Economy, Economic development._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Classical Economics on Economic Growth - Dictionary of Arguments
Kurz I 247 Economic growth/Classical economics/Kurz: Interpreters from Adolph Lowe (1954)(1) to Walter Eltis (1984)(2) have stressed that economic growth and socio-economic development in the classical authors from Adam Smith to David Ricardo and Karl Marx were considered endogenous phenomena. In their writings, the behaviour of agents, their creativity and need for achievement and distinction, and social rules and institutions defined the confines within which the process of the production, distribution and use of social wealth unfolded. Exogenous groth/neoclassical economics: The concept of exogenous growth, as it was introduced by Gustav Cassel(3) and then made central in Robert Solow's growth model (Solow 1956)(4), was totally extraneous to the way the classical economists thought. In their view the main problem the social sciences were confronted with consisted of the fact, in the words of Smith's teacher Adam Ferguson, that history is 'the result of human action, but not of human design'. What was needed was to come to grips, as best as one could, with the consequence of purposeful human actions, both intended and unin tended. Kurz I 248 Classical economics on groth/Kurz: [here we assume] essentially a one-sector economy in which 'corn' is produced by means of doses of labour-cum-capital, where Capital consists only of corn and each dose of labour-cum-capital exhibits the same proportion of labour to corn. This means that labour-cum-capital can be treated as if it were a Single factor of production. This bold simplification of the 'classical' approach to the problem of economic growth can only be justified if it does not misrepresent an important aspect of at least a variant of that approach. One generally engages in such simplifications only for heuristic reasons, and the heuristic perspective underlying this chapter is to prepare the ground for a comparison with prominent contributions to the so-called 'new' growth literature (see Kurz and Salvadori 1996(5), 1998a(6), 1998b(7), 1999(8), 2003(9)). Kurz I 249 (…) it is argued that the endogenisation of the growth rate in a class of models belonging to the so-called 'new' growth theory is carried out in a manner reminiscent of classical economics. Growth/Solow: While in the Solow growth model, for example, labour is treated as a non-producible and non-accumulable factor of production whose fixed rate of growth constrains the long-term expansion of the economic system, in some new growth models this factor is replaced by 'human capital' or 'knowledge' , which are taken to be producible and even accumulable (or costlessly transferable among subsequent generations of the population). „New growth“: Very much like the classical assumption of a given real wage rate this is equivalent to the assumption that there is a mechanism generating 'labour'. >Endogenous growth, >Exogenous growth. 1. Lowe, A. (1954) 'The Classical Theory of Growth', Social Research, 21: 127-58. 2. Eltis, W. (1984) The Classical Theory of Economic Growth, London: Macmillan. 3. Cassel, G. (1932) The Theory of Social Economy, revised English translation of the 5th German edition of Cassel (1918), Theoretische Sozialökonomie, by L. Barron, New York: Harcourt Brace. 4. Solow, R. M. (1956) 'A Contribution to the Theory of Economic Growth,' Quarterly Journal of Economics, 70: 65-94. 5. Kurz, H. D. and Salvadori, N. (1996) 'In the Beginning All the World Was Australia. in M. Sawyer (ed.), Festschrift in Honour Of G C. Harcourt, London: Routledge, vol. 11:425-43. 6. Kurz, H. D. and Salvadori, N. (1998a) 'The "New" Growth Theory•. Old Wine in New Goatskins', in F. Coricelli, M. Di Matteo and F. H. Hahn (eds), New Theories in Growth and Development, London: Macmillan, and New York: St. Martin's Press: 63-94. 7. Kurz, H. D. and Salvadori, N. (1998b) ' "Endogenous" Growth Models and the "Classical" Tradition', in H. D. Kurz and N. Salvadori, Understanding 'Classical' Economics, London: Routledge: 66—89. 8. Kurz, H. D. and Salvadori, N. (1999) 'Theories of "Endogenous" Growth in Historical Perspective', in Murat R. Sertel (ed.), Contemporary Economic Issues. Proceedings Of the Eleventh World Congress of the International Economic Association, Tunis. Volume 4, Economic Behaviour and Design, London: Macmillan, and New York: St. Martin's Press: 225-61. 9. Kurz, H. D. and Salvadori, N. (2003) 'Theories of EconomicGrowth Old and New', in Neri Salvadori (ed.), The Theory of Economic Growth: A 'Classical'Perspective, Cheltenham (UK): Edward Elgar: 1-22. Kurz, Heinz D. and Salvadori, Neri. „Endogenous growth in a stylised 'classical' model“.In: Kurz, Heinz; Salvadori, Neri 2015. Revisiting Classical Economics: Studies in Long-Period Analysis (Routledge Studies in the History of Economics). London, UK: Routledge._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Classical Economics Kurz I Heinz D. Kurz Neri Salvadori Revisiting Classical Economics: Studies in Long-Period Analysis (Routledge Studies in the History of Economics). Routledge. London 2015 |
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