 Alternative Theories of Growth Performance: II The Demand Orientated ApproachJ. S. L. McCombie and Anthony Thirlwall Chapter 2 in Economic Growth and the Balance-of-Payments Constraint, 1994, pp 155-231 from Palgrave Macmillan Abstract: Abstract By way of introduction to the demand orientated theories, it is useful to briefly recapitulate the conclusions of the ‘old’ neoclassical growth theory, pioneered by Solow. The 1970s saw a proliferation of theoretical neoclassical one sector growth models based on the aggregate production function, although a few models were constructed with separate consumption and capital goods sectors. Under the usual neoclassical assumptions there is always the full and efficient utilisation of all resources. That is to say, countries are assumed to exhibit both allocative and producer efficiency. Resources are optimally distributed between firms so that no redistribution could lead to a net increase in output. Firms are also technically efficient and costs are always minimised; there is no X-inefficiency in Leibenstein’s (1966) sense of the term. In the steady state, the growth of the capital stock is equal to the growth of output. Keywords: Labour Supply; Productivity Growth; Capital Stock; Total Factor Productivity; Output Growth (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-23121-8_2 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-23121-8_2 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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