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The neoclassical theory of growth and distribution

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  • Robert M. Solow

    (Massachussets Institute of Technology, Department of Economics, Cambridge, Mass (USA))

Abstract

The paper surveys the neoclassical theory of growth. As a preliminary, the meaning of the adjective "neoclassical" is discussed. The basic model is then sketched, and the conditions ensuring a stationary state are illustrated. The issue of the convergence to a stationary state (and that of the speed of convergence) is further considered. A discussion of "primary factors" opens the way to the "new" theory of growth, with endogenous technical progress. A number of extensions of the basic model are then recalled: two-sector and multi-sectoral models, overlapping generations models, the role of money in growth models.

Suggested Citation

  • Robert M. Solow, 2000. "The neoclassical theory of growth and distribution," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 53(215), pages 349-381.
    • Handle: RePEc:psl:bnlqrr:2000:41
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    File URL: http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/9923/9805
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    References listed on IDEAS

    as
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    Cited by:

    1. Luigi L. Pasinetti, 2000. "Critique of the neoclassical theory of growth and distribution," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 53(215), pages 383-431.
    2. Luigi L. Pasinetti, 2000. "Critique of the neoclassical theory of growth and distribution," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 53(215), pages 383-431.
    3. Geoff C. Harcourt & Peter Kriesler, 2014. "On Ricardo and Cambridge," Discussion Papers 2014-04, School of Economics, The University of New South Wales.
    4. Andrea Carrera & Sergio Rossi, 2015. "Money, income, and profit: lessons from the monetary theory of production," Iberian Journal of the History of Economic Thought, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Dpto. Historia e Instituciones Económicas I., vol. 2(1), pages 48-60, July.
    5. Avi J. Cohen, 2003. "Retrospectives: Whatever Happened to the Cambridge Capital Theory Controversies?," Journal of Economic Perspectives, American Economic Association, vol. 17(1), pages 199-214, Winter.

    More about this item

    Keywords

    Distribution; Growth; Income Distribution; Income;

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution

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