20
Literature

20.1 The new growth theory

The neoclassical growth model ( Solow 1956) implies that, in equilibrium, output growth will equal population growth and the exogenously given rate of technological progress. Government policies and institutions can only affect growth temporarily in the transition from one equilibrium to the other. The neoclassical model also implies that if capital is mobile, cross-country convergence should occur over time with richer countries growing slower and poorer ones 'catching up'.

By postulating socially non-diminishing returns to some productive factor, endogenous growth models open up the possibility of policies and institutions having a longer-term or even permanent influence on economic growth.1 There is also the potential for persistent non-convergence due to cross-national policy differences. These models provide the intellectual foundation for the explosion of empirical work exploring the relationship between governance and growth.


20.2 General empirical studies

In this section I discuss the general, large-sample, studies found mainly in the US economics literature (e.g. Kormendi and Meguire, 1985; Grier and Tullock, 1989; Barro, 1991; Mankiw, Romer and Weil, 1992). These empirical papers concentrate mainly on the effects of policy variables on economic growth. The basic economic model in these papers usually includes investment, population growth, and initial wealth. Barro ( 1991) examines data from ninety-eight countries averaged into a single

____________________
1
Papers by Paul Romer, Robert Solow and Howard Pack in the winter 1994 Journal of Economic Perspectives symposia on the new growth theory provide three interesting views on the development, strengths and shortcomings of these models.

-153-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited page

Bookmark this page
Government and Growth
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 274

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.