Endogenous growth and structural economic dynamics: a comparative analysis

Daniele Schiliro' ()

MPRA Paper from University Library of Munich, Germany

Abstract: Beginning with the Solow growth model as a baseline, this paper analyzes Paul Romer’s endogenous growth theory and Luigi Pasinetti’s structural economic dynamics framework, emphasizing their innovative contributions to the field. Although these theories differ methodologically and epistemologically, they share a fundamental emphasis on technical progress—defined as technological knowledge—as the primary driver of growth. This study highlights their commonalities, specifically their focus on knowledge, learning, and skills as the factors driving technological progress, though Pasinetti adopts a more evolutionary perspective. Finally, the paper contrasts their specific analytical toolkits: Romer’s reliance on the aggregate production function and the hypothesis of rational expectations versus Pasinetti’s utilization of input-output analysis, vertically integrated sectors, and the "natural system" of production.

Keywords: Solow exogenous growth model; Romer’s endogenous growth; Pasinetti’s structural economic dynamics; technological change; knowledge; learning (search for similar items in EconPapers)
JEL-codes: E1 J24 O3 O40 (search for similar items in EconPapers)
Date: 2026-02
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Journal Article: Endogenous growth and structural economic dynamics: A comparative analysis (2026)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:129256

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