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Human capital and institutions in the early models of endogenous theory of growth
135-149Views:173The endogenous theory of growth, or, as it is often called, the new theory of growth has become a fully-developed theory within about twenty years. The original goal of the theory was to offer better explanations for facts than traditional theories. However, this was only partly achieved. If this is so, then what are the proceeds of the whole theory? The study aims at proving that though the endogenous theory does not offer a much better explanation for facts, it has deepened our understanding of economic growth and incorporated factors in the formal theory, which so far have only been dealt with by "softer" branches of the theory of growth.
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From mud-hut to microprocessors: The unified growth theory
29-50Views:110The Unified Growth Theory attempts to explain economic growth in the long run within a single framework. Accordingly, it is expected that a successful unified theory is capable of modeling the transition among different economic regimes. In this study, after identifying the main features of the three growth regimes (Mathusian, post-Malthusian and sustained economic growth), we review two typical unified growth theories. While the Hansen-Prescott model seeks to explain how the transition occurred, the Galor-Weil model focuses on the causes and interrelatedness of the observed phenomena.
JEL classification: N10, O41
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Growth theory from an Austiran institutional perspective
157-174Views:98Perhaps the one fundamental question of growth theory is why some countries are poor while others are rich. The paper identifies two main lines of research approaching this question, by applying the social analysis of Williamson, and points out that both approaches give an asymmetric answer. The paper applies a critique, which was formulated in the theory of the firm, and compares it with a transaction cost approach. According to this critique, the one approach to economic growth lays too much emphasis on technology, while the other neglects the technological side and emphasizes only the transaction costs and incentives. This paper argues that a new approach, based on the insights of modern Austrian economics, is able to integrate these two sides.
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The role of culture in economic growth: an assessment, criticism and paths for future research
22-44Views:216There is an abundance of empirical literature on the impact of culture on economic development. This literature has been developing at the margin of growth theory and institutional economics. This paper reviews this branch of the literature by structuring it into three main lines, and placing an emphasis on (self)-criticism directed towards it, as well. The author provides some proposals for further steps towards improving the culturegrowth empirical literature, following the two routes identified by the (self)-criticism.
Journal of Economic Literature (JEL) codes: O43, Z19
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The Development of Growth Accounting Techniques in the Mirror of Economic Growth
85-103Views:143In this article we present the development of certain growth theories that model the main sources of growth. Since the elasticity of substitution – one of the most important parameters of production function – is not unity, as the Cobb-Douglas production function assumes, it can be different from a value of 1; hence we need a more general CES-type (Constant Elasticity of Substitution) production function. Another important question is the classification of factors of production. The elasticity of substitution is an efficiency factor as well, thus it receives special attention in the analysis. Finally we summarize the main papers that are mainly concerned with growth accounting, and try to answer the question of which factors play a significant or less significant role in economic growth. Growth accounting is strongly connected to growth theories so we refer back to growth theory at certain points.
JEL classification: E13, O47