Chapter 2 The One-Sector Growth (OSG) Model
ollowing the tradition of modern growth theory, we start investigating economic growth with an economy of one production sector. There are many kinds of commodities and services that we use and consume in our daily life: food, housing, clothing, cars, computers, air-conditioners, services from doctors or teachers or retailers, and entertainment by visiting museum or observing performance of artists and sportsmen. In modern times, this list has explosively grown. It is impossible to analyze economic issues in national and regional levels without aggregation.
In an aggregated sense, there are three types of commodities and services: some are capital goods like TV, clothing and machines; some are consumption ...
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