When economic growth is less than exponential

Research output: Contribution to journalJournal articlepeer-review

This paper argues that growth theory needs a more general notion of "regularity" than that of exponential growth. We suggest that paths along which the rate of decline of the growth rate is proportional to the growth rate itself deserve attention. This opens up for considering a richer set of parameter combinations than in standard growth models. And it avoids the usual oversimplistic dichotomy of either exponential growth or stagnation. Allowing zero population growth in three different growth models (the Jones R&D-based model, a learning-by-doing model, and an embodied technical change model) serves as illustration that a continuum of "regular" growth processes fill the whole range between exponential growth and complete stagnation.
Original languageEnglish
JournalEconomic Theory
Volume44
Issue number2
Pages (from-to)213-242
ISSN0938-2259
DOIs
Publication statusPublished - 2010

    Research areas

  • Faculty of Social Sciences - quasi-arithmetic growth, regular growth, semi-endogenous growth, knife-edge restrictions, learning by doing, embodied technical change

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