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A Unified Analytical Framework for Classical Theories of Economic Growth

Author

Listed:
  • Antonio Paradiso

    (Ca’ Foscari University of Venice)

  • Claudio Sardoni

    (Sapienza University of Rome)

  • Andrea Teglio

    (Ca’ Foscari University of Venice)

Abstract

This article develops a discrete-time model of economic growth inspired by classical thought, which unifies within a single formal framework the fundamental insights of Adam Smith, David Ricardo, and Thomas Robert Malthus. On the analytical level, the model allows for: (i) deriving a compact relationship between the output growth rate and the effective net profit rate, as well as an economic relevance condition that precludes degenerate trajectories; (ii) characterizing the distribution of income between profits and rents as a function of technological parameters (labor productivity, land–labor ratio, unit rent), highlighting the role of the reinvested profit share; (iii) specifying three variants—Smithian, Ricardian, and Malthusian— obtained solely by modifying the rule governing labor productivity formation and/or population dynamics. The model provides a unified formal framework to represent and compare the three main classical perspectives on growth, elucidating the connection between intertemporal dynamics and income distribution through a tool suitable for both theoretical analysis and numerical simulation.

Suggested Citation

  • Antonio Paradiso & Claudio Sardoni & Andrea Teglio, 2026. "A Unified Analytical Framework for Classical Theories of Economic Growth," Working Papers 2026: 12, Department of Economics, University of Venice "Ca' Foscari".
    • Handle: RePEc:ven:wpaper:2026:12
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • B12 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Classical (includes Adam Smith)
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium

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