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GENERALIZATIONS OF OPTIMAL GROWTH THEORY: STOCHASTIC MODELS, MATHEMATICS, AND METASYNTHESIS

Published online by Cambridge University Press:  10 August 2016

Stephen Spear  and
Warren Young
Stephen Spear*
Affiliation:
Tepper School of Business, Carnegie Mellon University
Warren Young
Affiliation:
Bar Ilan University
*
Address correspondence to: Stephen Spear, Tepper School of Business, Carnegie Mellon University, Pittsburgh, PA 15213, USA; e-mail: ss1f@andrew.cmu.edu.
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In previous papers [Spear and Young (2014, 2015)], we surveyed the origins, evolution, and dissemination of optimal growth, two-sector and turnpike models up to the early 1970s. Regarding subsequent developments in growth theory, a number of prominent observers, such as Fischer (1988), Stern (1991), and McCallum (1996), maintained that after significant progress in the 1950s and 1960s, economic growth theory “received relatively little attention for almost two decades” [Fischer (1988, p. 329)], and that “by the late 1960s early 1970s, research on the theory of growth more or less stopped” [Stern (1991, p. 259)]. Stern went on to say “the latter half of the 1980s saw a rekindling of growth theory, particularly in the work of Romer . . . and Lucas” (1991, p. 259), that is to say, in the form of “endogenous growth” models. McCallum, for his part, wrote (1996, p. 41), “After a long period of quiescence, growth economics has in the last decade (1986–1995) become an extremely active area of research.” Moreover, Brock and Mirman's (1972b) paper was the sole “extension” of Ramsey–Cass–Koopmans to a “stochastic environment” mentioned by McCallum (1996, 49).

Type
MD Survey
Information
Macroeconomic Dynamics , Volume 21 , Issue 2 , March 2017 , pp. 515 - 544
Copyright
Copyright © Cambridge University Press 2016 

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