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The history augmented Solow model

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  • Dalgaard, Carl-Johan
  • Strulik, Holger

Abstract

Unified growth theory predicts that the timing of the fertility transition is a key determinant of contemporary comparative development, as it marks the onset of the take-off to sustained growth. Neoclassical growth theory presupposes a take-off, and explains comparative development by variations in (subsequent) investment rates. The present analysis integrates these two perspectives empirically, and shows that they together constitute a powerful predictive tool vis-a-vis contemporary income differences.

Suggested Citation

  • Dalgaard, Carl-Johan & Strulik, Holger, 2013. "The history augmented Solow model," University of Göttingen Working Papers in Economics 151, University of Goettingen, Department of Economics.
  • Handle: RePEc:zbw:cegedp:151
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    Cited by:

    1. Carl-Johan Dalgaard & Holger Strulik, 2014. "Physiological Constraints and Comparative Economic Development," Discussion Papers 14-21, University of Copenhagen. Department of Economics.
    2. Cervellati, Matteo & Meyerheim, Gerrit & Sunde, Uwe, 2019. "The timing of the demographic transition and economic growth," Economics Letters, Elsevier, vol. 181(C), pages 43-46.
    3. Strulik, Holger, 2019. "Desire And Development," Macroeconomic Dynamics, Cambridge University Press, vol. 23(7), pages 2717-2747, October.
    4. Holger Strulik, 2017. "Contraception And Development: A Unified Growth Theory," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 58(2), pages 561-584, May.
    5. Carl-Johan Dalgaard & Holger Strulik, 2015. "The physiological foundations of the wealth of nations," Journal of Economic Growth, Springer, vol. 20(1), pages 37-73, March.
    6. Klaus Prettner & Holger Strulik, 2017. "It's a Sin—Contraceptive Use, Religious Beliefs, and Long-run Economic Development," Review of Development Economics, Wiley Blackwell, vol. 21(3), pages 543-566, August.
    7. Carl-Johan Dalgaard & Anne Sofie B. Knudsen & Pablo Selaya, 2020. "The bounty of the sea and long-run development," Journal of Economic Growth, Springer, vol. 25(3), pages 259-295, September.
    8. Jeanet Sinding Bentzen & Nicolai Kaarsen & Asger Moll Wingender, 2013. "The Timing of Industrialization across Countries," Discussion Papers 13-17, University of Copenhagen. Department of Economics.
    9. Corriveau, Louis, 2021. "Technologies, Institutions, development and growth," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 159-164.
    10. Holger Strulik & Klaus Prettner & Alexia Prskawetz, 2013. "The past and future of knowledge-based growth," Journal of Economic Growth, Springer, vol. 18(4), pages 411-437, December.
    11. Murach, Michael & Wagner, Helmut & Kim, Jungsuk & Park, Donghyun, 2020. "Trajectories to high income: comparing the growth dynamics in China, Korea, and Japan with cointegrated VAR models," CEAMeS Discussion Paper Series 16/2020, University of Hagen, Center for East Asia Macro-economic Studies (CEAMeS).
    12. Madsen, Jakob Brøchner & Strulik, Holger, 2020. "Testing unified growth theory: Technological progress and the child quantity-quality tradeoff," University of Göttingen Working Papers in Economics 393, University of Goettingen, Department of Economics.
    13. 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..
    14. Michael Donadelli & Vahid Mojtahed & Antonio Paradiso, 2015. "Technological Progress, Investment Frictions and Business Cycle: New Insights from a Neoclassical Growth Model," Working Papers LuissLab 15119, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    15. Francesco Cinnirella & Jochen Streb, 2017. "The role of human capital and innovation in economic development: evidence from post-Malthusian Prussia," Journal of Economic Growth, Springer, vol. 22(2), pages 193-227, June.
    16. Kufenko, Vadim & Prettner, Klaus & Geloso, Vincent, 2020. "Divergence, convergence, and the history-augmented Solow model," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 62-76.
    17. Deeken, Tim, 2015. "Schumpeterian growth with technological interdependence: An application to US states," Working Paper Series in Economics 75, Karlsruhe Institute of Technology (KIT), Department of Economics and Management.
    18. Holger Strulik & Sebastian Vollmer, 2015. "The fertility transition around the world," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(1), pages 31-44, January.
    19. Thomas Barnebeck Andersen & Carl-Johan Dalgaard & Pablo Selaya, 2011. "Eye Disease and Development," Discussion Papers 11-22, University of Copenhagen. Department of Economics.
    20. Wang, Qingfeng & Sun, Xu, 2016. "The Role of Socio-political and Economic Factors in Fertility Decline: A Cross-country Analysis," World Development, Elsevier, vol. 87(C), pages 360-370.
    21. Munir Ahmad & Rana Ejaz Ali Khan, 2019. "Does Demographic Transition with Human Capital Dynamics Matter for Economic Growth? A Dynamic Panel Data Approach to GMM," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(2), pages 753-772, April.
    22. Antonio Navas-Ruiz, 2008. "On Trade Openness, Institutional Change and Economic Growth," Working Papers halshs-00326394, HAL.
    23. Robert TAMURA & David CUBERES, 2020. "Equilibrium and A-efficient Fertility with Increasing Returns to Population and Endogenous Mortality," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 86(2), pages 157-182, June.
    24. Shamima Nasrin & Angathevar Baskaran & Rajah Rasiah, 2017. "Microfinance and savings among the poor: evidence from Bangladesh microfinance sector," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(4), pages 1435-1448, July.
    25. Jakob B. Madsen & Md. Rabiul Islam & Xueli Tang, 2020. "Was the post-1870 fertility transition a key contributor to growth in the West in the twentieth century?," Journal of Economic Growth, Springer, vol. 25(4), pages 431-454, December.

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    More about this item

    Keywords

    comparative development; unified growth theory; neoclassical growth theory;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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