Verdoorn’s Law and the Analysis of Steady-State Growth: from an Unsatisfactory Marriage to a New Perspective

Maurizio Pugno

Chapter 10 in Productivity Growth and Economic Performance, 2002, pp 239-258 from Palgrave Macmillan

Abstract: Abstract This chapter tells a story which has an apparently unfortunate ending. The story concerns a basic, although rather neglected, aspect of Verdoorn’s Law — namely its compatibility with steady-state growth. The story appears to be unfortunate, since the attempts to marry Verdoorn’s Law to the analysis of steady-state growth produce inconsistencies and weaknesses. This fact seems to prevent Verdoorn’s Law from playing a satisfactory role in any long-run analysis. However, as this chapter will briefly show, Verdoorn’s Law can still have a useful role in long-run analysis if its role in economic development is explained and made endogenous.

Keywords: Labour Supply; Productivity Growth; Endogenous Growth; Constant Return; Advanced Country (search for similar items in EconPapers)
Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-50423-3_10

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230504233

DOI: 10.1057/9780230504233_10

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().