Economic Growth Theory

Book Description

This book develops a new theoretical framework to examine the issues of economic growth and development. Providing analysis of economic dynamics in a competitive economy under government intervention in infrastructure and income distribution, the book develops a unique analytical framework under the influence of traditional neoclassical growth theory. However, in a departure from neoclassical growth theory it examines both the Solow-Swan and the Ramsey growth models, introducing a utility function which treats consumer choices in ways critically different to previous approaches. Using practical examples and models the book demonstrates how this new direction can effectively analyze the key issues of economic growth, in a compact and comprehensive manner.

Table of Contents

  1. Cover
  2. Half Title
  3. Title
  4. Copyright
  5. Contents
  6. List of Figures
  7. List of Tables
  8. Preface
  9. Acknowledgements
  10. 1 Economic Growth and Growth Theory
    1. 1.1 Economic Growth
    2. 1.2 Economic Growth Theory
    3. 1.3 The Structure of the Book
  11. 2 The One-Sector Growth (OSG) Model
    1. 2.1 Behavior of Producers
    2. 2.2 Behavior of Consumers
    3. 2.3 On the Generalized Keynesian Consumption Function
    4. 2.4 Dynamics in Capital-Labor Ratio
    5. 2.5 Existence of a Stable Steady State
    6. 2.6 Productivity Improvement, Population Growth and the APS
    7. 2.7 The Dynamics with the Cobb-Douglas Production Function
    8. 2.8 The OSG Model with the CES Production Function
    9. 2.9 The OSG Model with the Leontief Production Function
    10. 2.10 The OSG Model with General Utility Functions
    11. 2.11 The OSG Model with Preference Dynamics
    12. 2.12 The OSG Model in Discrete Time
    13. 2.13 On the OSG Model
    14. Appendix
      1. A.2.1 Proving Theorem 2.4.1
      2. A.2.2 The General OSG Model in Discrete Time
  12. 3 Traditional Growth Theories and the OSG Model
    1. 3.1 The Harrod-Domar Model
    2. 3.2 The Solow Model and the OSG Model
    3. 3.3 The Life Cycle Hypothesis and the Generalized Keynesian Consumption Function in the OSG Model
    4. 3.4 The Permanent Income Hypothesis and the Generalized Keynesian Consumption Function
    5. 3.5 The Ramsey Growth Model
    6. 3.6 The Ramsey Model and the OSG Model
    7. 3.7 Poverty Traps Generated in the Solow Model
    8. 3.8 On the Utility Function in the OSG Model
    9. Appendix
      1. A.3.1 The Golden Rule of Capital Accumulation in the Solow Model
  13. 4 Some Extensions of the OSG Model
    1. 4.1 Exogenous Technological Change
    2. 4.2 Endogenous Time and the OSG Model
    3. 4.3 Simulating Evolution of Time Value and Distribution
    4. 4.4 Public Goods and Returns to Scale
    5. 4.5 Home Production in the OSG Model
    6. 4.6 Environment and Growth
    7. 4.7 Population and Capital Accumulation
    8. 4.8 Money and Economic Growth
    9. Appendix
      1. A.4.1 The General OSG model with Endogenous Labor
      2. A.4.2 Proving Lemma 4.6.1
  14. 5 Income Distribution and Growth
    1. 5.1 Growth with Income Transfers
    2. 5.2 Does Inequality Accelerate Growth?
    3. 5.3 Properties of the Dynamic System
    4. 5.4 The Distribution Policy and the Equilibrium
    5. 5.5 Human Capital and the Distribution Policy
    6. 5.6 Dynamics of the Loren Curve and the Kuznets Curve
    7. 5.7 Endogenous Time in the Two-Group Model
    8. 5.8 The OSG Model with Multiple Consumers
    9. 5.9 Simulating the Three-Group OSG Model
    10. 5.10 The OSG Model with Sexual Division of Labor
    11. 5.11 On Modeling Group Differences
    12. Appendix
      1. A.5.1 Stability Conditions in Section 5.3
  15. 6 Structural Changes and Development
    1. 6.1 The Uzawa Two-Sector Model
    2. 6.2 Refitting the Uzawa Model
    3. 6.3 Behavior of the Two-Sector Model
    4. 6.4 A Generalization of the Ricardian Growth Model
    5. 6.5 Discussion on Growth Rates
    6. 6.6 Simulating Economic Structural Change
    7. 6.7 The Propensity to Hold Wealth and Economic Structure
    8. 6.8 Engel's Law and Structural Change
    9. 6.9 A Two-Capital Growth Model
    10. 6.10 Economic Evolution with Multiple Sectors
    11. Appendix
      1. A.6.1 Proving Proposition 6.4.1
  16. 7 Growth, Unemployment and Welfare
    1. 7.1 The Welfare Economy with Unemployment
    2. 7.2 Dynamics in Capital-Worker Ratios
    3. 7.3 Equilibrium of the Economy
    4. 7.4 The Unemployment Policy
    5. 7.5 The Efficiency Wage Theory
    6. 7.6 Applying the Efficiency Wage Theory to the OSG Model
    7. 7.7 Other Causes of Unemployment
    8. Appendix
      1. A.7.1 A General OSG Model with the Efficiency Wage Theory
  17. 8 Learning by Doing, Education and Learning by Leisure
    1. 8.1 The AK-OSG Model with Learning by Doing
    2. 8.2 The AK-Ramsey Model
    3. 8.3 The Lucas Growth Model with Education
    4. 8.4 Growth with Multiple Ways of Learning
    5. 8.5 Growth Rates and the Education Policy
    6. 8.6 Lower Propensity to Save and Higher Growth Rates
    7. 8.7 More Than 'All Work and No Play Make Jack a Dull Boy'
    8. 8.8 The Dynamic Properties of the Model
    9. 8.9 Leisure and the Equilibrium Economic Structure
    10. 8.10 Growth, Human Capital and Unemployment
    11. 8.11 Human Capital and Economic Development
    12. Appendix
      1. A.8.1 Endogenous Education in the OSG Model
      2. A.8.2 The Dynamics in Terms of K(t) and H(t)
      3. A.8.3 Proving Proposition 8.8.1
      4. A.8.4 Growth with Human Capital and Unemployment
  18. 9 Research and Learning by Doing
    1. 9.1 Growth with Learning by Doing and Research
    2. 9.2 Growth Rates and the Research Policy
    3. 9.3 Intermezzo for Multiple Equilibria and Poverty Traps
    4. 9.4 Equilibrium of the Growth Model with Knowledge
    5. 9.5 The Policy on Scientists' Payment
    6. 9.6 The Job Amenities and Economic Structure
    7. 9.7 Knowledge Accumulation and Economic Structure
    8. 9.8 Economic Growth with Knowledge and Multiple Groups
    9. 9.9 On Growth with Endogenous Knowledge
  19. 10 New Growth Theories and Monopolistic Competition
    1. 10.1 Development with Monopolistic Competition
    2. 10.2 Product Variety and Growth
    3. 10.3 Variety of Consumer Goods and Growth
    4. 10.4 The Schumpeterian Creative Destruction
    5. 10.5 Growth with Improvements in Quality of Products
    6. 10.6 Learning by Doing and Research
    7. 10.7 The New Growth Theory and Linearized Knowledge Growth
  20. 11 Complexity of Economic Growth
    1. 11.1 Preference Change with the OSG Model
    2. 11.2 Economic Chaos as Conclusion
  21. Bibliography
  22. Index

Product Information

  • Title: Economic Growth Theory
  • Author(s): Wei-Bin Zhang
  • Release date: January 2018
  • Publisher(s): Routledge
  • ISBN: 9781351159425