Research

Explaining Neoclassical Economists' Pro-growth Agenda: Does the Popular Solow Growth Model Bias Economic Analysis?

The Solow model concludes that long–run growth depends on technological progress, which is taken by neoclassical economists as suggesting there are no limits to growth because humanity's capacity to think and expand knowledge is unlimited. This paper develops a two–sector Solow model consisting of natural and economic sectors, and it demonstrates that continued rapid growth is not inevitable and an economic collapse is possible. The logical application of the Solow model thus does not provide a justification for continuing the energy–based technological change and economic growth we have experienced over the past two centuries.

Publication Information
Article Title: Explaining Neoclassical Economists' Pro-growth Agenda: Does the Popular Solow Growth Model Bias Economic Analysis?
Journal: International Journal for Pluralism and Economic Education (2012)
3(1): 40-62 DOI: 10.1504/IJPEE.2012.047472
Author(s): van den Berg, Hendrik
Researcher Information
    
van den Berg, Hendrik
van den Berg, Hendrik
Emeritus
Expertise:
  • Economic Development
  • Heterodox Economics
  • International Finance
  • Open-Economy Macroeconomics
Economics
HLH 523
P.O. Box 880489
University of Nebraska-Lincoln
Lincoln, NE 68588-0489, USA
Phone: (402) 472-2319
hvan-den-berg1@unl.edu