The development of the endogenous growth model rekindled interest in growth theory. In contrast to the neo-classical model, long-run endogenous growth emerged as an equilibrium outcome, reflecting the behaviour of optimizing agents in the economy. This book brings together a number of contributions in growth theory and macroeconomic dynamics, reflecting these developments and the ongoing debate over the relative merits of neo-classical and endogenous growth models. It focuses on the emergence of three important aspects: First, it develops growth models that extend the underlying theory in different directions. Second, it addresses one of the concerns of the literature on growth and dynamics: the statistical properties of underlying data and the effort to ensure that growth models are consistent with empirical evidence. Third, it discusses the increasingly international focus of macrodynamics and growth theory, an inevitable consequence of the integration of the world economy.
• State-of-the-art assessment of macroeconomic dynamic methods for economic growth • Authors are leading specialists on subject matter in North America, Europe and Australia • Comprehensive coverage of a hot topic in economics, business, finance
Preface; Contributors; Part I. Topics in Growth Theory: 1. Growth and the elasticity of factor substitution John D. Pitchford; 2. Relative wealth, catching up and economic growth Ngo Van Long and Koji Shimomura; 3. Knowledge and development: a Schumpeterian approach Philippe Aghion, Cecilia García-Peñalosa and Peter Howitt; Part II. Statistical Issues in Growth and Dynamics: 4. Delinearizing the neoclassical convergence model Steve Dowrick; 5. Bifurcations in macroeconomic models William A. Barnett and Yijun He; Part III. Dynamic Issues in International Economics: 6. Dynamic trade creation Eric O'N. Fisher and Neil Vousden; 7. Substitutability of capital, investment costs, and foreign aid Santanu Chatterjee and Stephen J. Turnovsky; 8. Microchurning with smooth macro growth: two examples Ronald W. Jones; Index.