Jump to ContentJump to Main Navigation
Productivity and the Bonus Culture$
Users without a subscription are not able to see the full content.

Andrew Smithers

Print publication date: 2019

Print ISBN-13: 9780198836117

Published to Oxford Scholarship Online: May 2019

DOI: 10.1093/oso/9780198836117.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 01 April 2020

Two Models of Growth

Two Models of Growth

Chapter:
(p.45) 8 Two Models of Growth
Source:
Productivity and the Bonus Culture
Author(s):

Andrew Smithers

Publisher:
Oxford University Press
DOI:10.1093/oso/9780198836117.003.0008

In order to devise an appropriate policy to boost growth it is essential to understand its causes, which in Solow’s accounting framework depend on changes in capital, labour, and technology. Both the model discussed here and the standard consensus interpretation follow Solow, but differ significantly with regard to their results and the appropriate policies they indicate. The one set out here is more optimistic: it shows that growth can be advanced through additional investment not just from changes in technology. This chapter argues that the consensus approach is unscientific because untestable and that, in, contrast, the model set out here is testable and robust when tested and should therefore be preferred. The two key differences in the models which produce this divergence are the way in which capital volumes are calculated and the influences other than technology which determine the level of investment and the volume of the capital stock.

Keywords:   policy, technology, capital volume, labour, consensus interpretation, TFP, scrapped, productivity, OECD manual, original cost

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .