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Harrod's cumulative growth circle

Author

Listed:
  • Giulio Guarini

    (Italian Ministry of Economic Development)

Abstract

In this paper I aim to show through an analysis from a history of economic thought perspective that Harrod's famous model, An Essay in Dynamic Theory (1939), can be considered a fundamental example of cumulative growth circle. Having described the original model, I then go on to examine the meaning of dynamic analysis and instability in Harrod's approach, analyzing respectively the debates between Asimakopulos and Kregel and between Harrod and Keynes. Finally, I describe the main properties of Harrod cumulative growth circle by comparing Harrod's model to Domar's (1946). I argue that Harrod's growth approach is very different from the mainstream version.

Suggested Citation

  • Giulio Guarini, 2011. "Harrod's cumulative growth circle," Economics Bulletin, AccessEcon, vol. 31(4), pages 3041-3051.
    • Handle: RePEc:ebl:ecbull:eb-11-00568
    as

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    References listed on IDEAS

    as
    1. J. A. Kregel, 1980. "Economic Dynamics and the Theory of Steady Growth: An Historical Essay on Harrod's ‘Knife-edge'," History of Political Economy, Duke University Press, vol. 12(1), pages 97-123, Spring.
    2. Giulio Guarini, 2007. "Instabilit? harrodiana e teoria della crescita endogena," STUDI ECONOMICI, FrancoAngeli Editore, vol. 2007(91), pages 91-116.
    3. Daniele Besomi, 1996. "An Additional Note on the Harrod-Keynes Correspondence," History of Political Economy, Duke University Press, vol. 28(2), pages 281-294, Summer.
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    More about this item

    Keywords

    Harrod; instability; dynamic analysis.;
    All these keywords.

    JEL classification:

    • B0 - Schools of Economic Thought and Methodology - - General
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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