Dynamic economic growth: A new method of approach
DOI:
https://doi.org/10.15359/abra.40-61.1Keywords:
Cobb and Douglas, Keynes, Harrod, Domar, Swan, Solow, Warranted/Natural rates of growth, Effective/Aggregated demandsAbstract
This paper looks at Harrod’s fundamental assumptions and equations in ‘An essay in dynamic theory’ as the foundation for suggesting a better understanding of his postulates on economic growth. The analysis we present attempts to measure the effects of resource composition on the field of economic growth by determining its elasticity and the coefficient of acceleration. By addressing new critical assumptions, key formulas, and methods of approach, some crucial findings provide a strong theoretical model with which to examine dynamic economic growth. Furthermore, this paper offers a brief review of Solow’s and Swan’s critiques of Harrod’s essay. This analysis could inspire further advances in the study of economic growth at the academic level and even in terms of government macroeconomic policies and business decisions.
References
Cobb, W. C., & Douglas, H. P. (1928). A theory of production. The American Economic Review, 18(1), 139-165.
Domar, E. D. (1946). Capital Expansion, Rate of Growth, and Employment. Econometrica, 14(02), 137-147.
Harrod, R. F. (1939). An essay in dynamic theory. The Economic Journal, 49(193), 14-33. doi: https://doi.org/10.2307/2225181.
Harrod, R. F. (1960). Second essay in dynamic theory. The Economic Journal, 70(178), 277-293. doi: https://doi.org/10.2307/2228728.
Keynes, J. M. (1964). The general theory of employment, interest, and money (First ed.). United States of America: A Harvest/HBJ Book.
Solow, M. R. (1956). A contribution to the theory of economic growth. The Quarterly Journal of Economics, 70(1), 65-94. doi: https://doi.org/10.2307/1884513.
Solow, M. R. (1957). Technical change and the aggregate production function. The Review of Economics and Statistics, 39(3), 312-320. doi: https://doi.org/10.2307/1926047.
Swan, T. W. (1956). Economic growth and capital accumulation. Economic Record(32), 334-361. Doi: https://doi.org/10.1111/j.1475-4932.1956.tb00434.x.
Villalobos, C. D. (2019). Crecimiento económico: Convergencia y divergencia. Economía y Sociedad, 24(55), 1-30. doi: http://dx.doi.org/10.15359/eys.23-55.3.
Villalobos, C. D. (2019a). Crecimiento económico: Contribución y participación de los recursos. ABRA, 40(59). doi: https://doi.org/10.15359/abra.39-59.1
Villalobos, C. D. (2020). Economic growth: Productivity, thrift and capital accumulation. Economía y Sociiedad, 25(57).
Published
How to Cite
Issue
Section
License
This publication is under a Creative commons attribution NonCommercial-ShareAlike 4.0 International and all restrictions and attributions must be regarded.
Authors that publish in this journal agree to grant exclusive, costless, worldwide and timeless ownership of their rights over the paper to Universidad Nacional, Costa Rica.
Revista ABRA by Universidad Nacional is licensed under a Creative Commons Reconocimiento-NoComercial-CompartirIgual 4.0 Internacional License.
Creado a partir de la obra enhttp://www.revistas.una.ac.cr/index.php/abra.
