IDEAS home Printed from https://ideas.repec.org/p/ven/wpaper/202612.html

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
    as

    Download full text from publisher

    File URL: https://www.unive.it/web/fileadmin/user_upload/dipartimenti/DEC/doc/Pubblicazioni_scientifiche/working_papers/2026/WP_DSE_paradiso_sardoni_teglio_12_26.pdf
    File Function: First version, anno
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Giancarlo de Vivo, 2015. "David Ricardo’s An Essay on the Effects of a Low Price of Corn on the Profits of Stock," History of Economics Review, Taylor & Francis Journals, vol. 62(1), pages 76-97, June.
    2. Oded Galor, 2011. "Unified Growth Theory and Comparative Development," Rivista di Politica Economica, SIPI Spa, issue 2, pages 9-21, April-Jun.
    3. Pierangelo Garegnani, 2024. "Value and Distribution in the Classical Economists and Marx," Springer Studies in the History of Economic Thought, in: Roberto Ciccone (ed.), Capital Theory, the Surplus Approach, and Effective Demand, pages 305-340, Springer.
    4. Hollander, Samuel, 1984. "The Wage Path in Classical Growth Models: Ricardo, Malthus and Mill," Oxford Economic Papers, Oxford University Press, vol. 36(2), pages 200-212, June.
    5. Walter Eltis, 2000. "The Classical Theory of Economic Growth," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-0-230-59820-1, June.
    6. Luigi L. Pasinetti, 1960. "A Mathematical Formulation of the Ricardian System," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 27(2), pages 78-98.
    7. Ronald L. Meek, 1971. "Smith, Turgot, and the “Four Stages†Theory," History of Political Economy, Duke University Press, vol. 3(1), pages 9-27, Spring.
    8. Skinner, Andrew S, 1979. "Adam Smith: An Aspect of Modern Economics?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 26(2), pages 109-125, June.
    9. Young, Allyn A., 1928. "Increasing Returns and Economic Progress," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 38, pages 527-542.
    10. Haim Barkai, 1969. "A Formal Outline of a Smithian Growth Model," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 83(3), pages 396-414.
    11. Matthew Smith, 2023. "Adam Smith on Growth and Economic Development," History of Economics Review, Taylor & Francis Journals, vol. 86(1), pages 2-15, September.
    12. Oded Galor, 2011. "Unified Growth Theory," Economics Books, Princeton University Press, edition 1, number 9477, December.
    13. Walter Eltis, 2000. "The Classical Theory of Economic Growth," Palgrave Macmillan Books, in: The Classical Theory of Economic Growth, edition 0, chapter 9, pages 310-338, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Duncan K. Foley & Thomas R. Michl, 2010. "The Classical Theory of Growth and Distribution," Chapters, in: Mark Setterfield (ed.), Handbook of Alternative Theories of Economic Growth, chapter 2, Edward Elgar Publishing.
    2. Kawalec Paweł, 2020. "The dynamics of theories of economic growth: An impact of Unified Growth Theory," Economics and Business Review, Sciendo, vol. 6(2), pages 19-44, June.
    3. Thomas Baudin & Robert Stelter, 2022. "The rural exodus and the rise of Europe," Journal of Economic Growth, Springer, vol. 27(3), pages 365-414, September.
    4. Herrera-Almanza, Catalina & McCarthy, Aine Seitz, 2025. "Strategic Responses to Disparities in Spousal Desired Fertility: Experimental Evidence from Rural Tanzania," IZA Discussion Papers 18115, IZA Network @ LISER.
    5. Casey, Gregory & Galor, Oded, 2017. "Is faster economic growth compatible with reductions in carbon emissions? The role of diminished population growth," MPRA Paper 76164, University Library of Munich, Germany.
    6. Marcello D’Amato & Francesco Flaviano Russo, 2026. "Cultural doorways in the barriers to development," Journal of Economic Growth, Springer, vol. 31(1), pages 125-178, March.
    7. Jeremy Greenwood & Nezih Guner & Guillaume Vandenbroucke, 2017. "Family Economics Writ Large," Journal of Economic Literature, American Economic Association, vol. 55(4), pages 1346-1434, December.
    8. Li, Defu & Bental, Benjamin, 2023. "What determines the Direction of Technological Progress(2023.11.16)?," MPRA Paper 119211, University Library of Munich, Germany, revised 16 Nov 2023.
    9. Bellino, Enrico & Nerozzi, Sebastiano, 2013. "Causality and interdependence in Pasinetti's works and in the modern classical approach," MPRA Paper 52179, University Library of Munich, Germany.
    10. Thomas I. Renström & Luca Spataro, 2021. "Optimal taxation in an endogenous growth model with variable population and public expenditure," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 23(4), pages 639-659, August.
    11. Richard S. J. Tol, 2021. "The Economic Impact of Climate in the Long Run," World Scientific Book Chapters, in: Anil Markandya & Dirk Rübbelke (ed.), CLIMATE AND DEVELOPMENT, chapter 1, pages 3-36, World Scientific Publishing Co. Pte. Ltd..
    12. Darrell J. Glaser & Ahmed S. Rahman, 2017. "Development and Retention of Human Capital in Large Bureaucracies," Departmental Working Papers 60, United States Naval Academy Department of Economics.
    13. Hu, Sijie, 2025. "Celebrating legacy: The intergenerational transmission of reproduction and human capital in Ming-Qing Chinese families," GLO Discussion Paper Series 1572, Global Labor Organization (GLO).
    14. Franck, Raphaël & Galor, Oded, 2021. "Flowers of evil? Industrialization and long run development," Journal of Monetary Economics, Elsevier, vol. 117(C), pages 108-128.
    15. Björn Brey, 2021. "The Long-run Gains from the Early Adoption of Electricity," Working Papers ECARES 2021-23, ULB -- Universite Libre de Bruxelles.
    16. Bloom, David E. & Canning, David & Kotschy, Rainer & Prettner, Klaus & Schünemann, Johannes, 2024. "Health and economic growth: Reconciling the micro and macro evidence," World Development, Elsevier, vol. 178(C).
    17. Becker, Sascha O. & Rubin, Jared & Woessmann, Ludger, 2020. "Religion in Economic History: A Survey," CEPR Discussion Papers 14894, Centre for Economic Policy Research.
    18. Schäfer, Andreas & Prettner, Klaus, 2016. "The fall and rise of inequality," VfS Annual Conference 2016 (Augsburg): Demographic Change 145806, Verein für Socialpolitik / German Economic Association.
    19. David de la Croix & Matthias Doepke & Joel Mokyr, 2018. "Clans, Guilds, and Markets: Apprenticeship Institutions and Growth in the Preindustrial Economy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(1), pages 1-70.
    20. Melki, Mickael & Rapoport, Hillel & Spolaore, Enrico & Wacziarg, Romain, 2024. "Cultural Remittances and Modern Fertility," CAGE Online Working Paper Series 723, Competitive Advantage in the Global Economy (CAGE).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ven:wpaper:2026:12. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sassano Sonia (email available below). General contact details of provider: https://edirc.repec.org/data/dsvenit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.