Psychology Dictionary of ArgumentsHome
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| Exogenous growth: Exogenous growth in economics refers to economic growth driven by factors external to the economy, such as technological advancements, population growth, or government policies. It is central to the Solow-Swan model, which assumes that long-term growth arises from external forces rather than internal economic dynamics like capital accumulation or innovation within the system. See also Economic growth, Endogenous growth, New Growth Theory._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Neoclassical Economics on Exogenous Growth - Dictionary of Arguments
Kurz I 258 Growth/exogenous growth/Neoclassical economics/Kurz: A theory based on the typical marginalist set of data (M1)-(M3) is hardly able to determine growth endogenously. (M 1) the set of technical alternatives from which cost-minimising producers can choose, (M 2) the preferences of consumers, and (M 3) the initial endowments of the economy and the distribution of property rights among individual agents. (…) the majority of neoclassical authors have been concerned with developing theories that revolved around the concept of an exogenously given long-term rate of economic growth. It sumces to recall the efforts of some of the leading advocates of marginalism. Thus, in Chapter V of Book V of his Principles of Economics, Alfred Marshall first introduced the 'famous fiction of the stationary state' and then tried to weaken the strong assumptions required by it. >Alfred Marshall. The Stationary State has just been taken to be one in which population is stationary. But nearly all its distinctive features may be exhibited in a Place where population and wealth are both growing, provided they are growing at about the same rate, and there is no scarcity of land: and provided also the methods of production and the conditions of trade change but little; and above all, where the character of man himself is a constant quantity. For in such a state by far the most important conditions of production and consumption, of exchange and distribution will remain of the same quality, and in the same general relations to one another, though they are all increasing in volume. (Marshall [1890] 1977: 306)(1) The resulting economic system grows at a constant rate that equals the exogenous rate of growth of population. Income distribution and relative prices are the same as in the stationary economy. In modern parlance: the system expands along a steady-state growth path. 1. Marshall, A. (1977) Principles of Economics, reprint of the 8th edn (1920), Ist edn 1890, London and Basingstoke: Macmillan. Kurz, Heinz D. and Salvadori, Neri. „Endogenous growth in a stylised 'classical' model“.In: Kurz, Heinz; Salvadori, Neri 2015. Revisiting Classical Economics: Studies in Long-Period Analysis (Routledge Studies in the History of Economics). London, UK: Routledge._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Neoclassical Economics Kurz I Heinz D. Kurz Neri Salvadori Revisiting Classical Economics: Studies in Long-Period Analysis (Routledge Studies in the History of Economics). Routledge. London 2015 |
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> Counter arguments in relation to Exogenous Growth
