Economic Growth

Rowan, D. C.

doi:10.1007/978-1-349-06800-5_21

Cited by 2 publications

(4 citation statements)

References 1 publication

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Solow (1966) submitted that "the aggregate production function is an 'illuminating parable', or a mere device for handling data, to be used so long as it gives good empirical results, and to be discarded as soon as it does not, or as soon as something better comes up" (Felipe & McCombie, 2005). Wan (1971) also supported Solow when he argued that the functional relationship between output (Q) capital (K) and labour (L) is an empirical law which is operationally meaningful, since it can be empirically tested (Felipe & McCombie, 2005). In further support, Cobb and Douglas (1928) and Douglas (1948) found that the aggregate production function gives a good statistical fit, with the estimated output elasticities close to the factor shares.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Designing a Framework for Employment-Growth Targeting in Nigeria

Adeniyi¹

2021

JAD

View full text Add to dashboard Cite

Unemployment in Nigeria has assumed disturbing proportions despite fifteen years of sustained economic growth outcomes between 2000 and 2014. This needs very urgent attention from policy makers since the problem has further resulted in other social vices like: armed robbery, kidnapping, political thuggery, pipe-line vandalisation, and social unrest.Unfortunately, policy makers have approached the deep-rooted problems with only tactical and superficial methods. There has been no serious attempt to target employment based on the economic fundamentals; and, the interdependencies and the interconnectedness of the various sectors and the working of the economy.Using Johansen co-integration, and applying Vector Error Correction Model (VECM) regression to time series sectoral economic data of Gross Value Added (GVA), employment, interest rate, wage rate, and inflation rate, collected from the National Bureau of Statistics (NBS) this study constructed a framework that policy makers can use to target growth and employment simultaneously.

show abstract

Section: Theoretical Frameworkmentioning

confidence: 99%

Designing a Framework for Employment-Growth Targeting in Nigeria

Adeniyi¹

2021

JAD

View full text Add to dashboard Cite

show abstract

“…Harrod's reformulation seemed to meet some of Solow's criticism, even though Harrod (ibid) insisted that, unlike Ramsey, his equations and diagram showed how forces operating 'at a point of time' determine optimal saving. As observed by Wan (1971, p. 22, n. 6), Harrod (1960 had grafted the constant saving/income ratio assumption of Keynes onto the optimal saving model of Ramsey. 'But under what conditions will the optimal saving ratio be constant over time?'…”

Section: Harrod's Supply Equation Was Derived By Rewriting Ramsey's Condition Asmentioning

confidence: 99%

“…'But under what conditions will the optimal saving ratio be constant over time?' The answer is that, in an optimal saving model with constant capital/output ratio and constant elasticity of marginal utility e, the optimal output path and the optimal consumption path will grow at the same rate only if e = 1, as in the utility function u = log c, a quite restrictive case (Wan 1971). Such criticism did not apply to Harrod's (1963a, pp.…”

Section: Harrod's Supply Equation Was Derived By Rewriting Ramsey's Condition Asmentioning

confidence: 99%

“…By the 1960s, when the neoclassical Solow-Swan model came to dominate growth economics, Harrod's subtle distinction between three growth rates and its dynamic implications were largely gone. This helps to explain why his approach to optimum saving attracted only scattered critical attention from contemporary commentators (Graaff 1960, Sen 1961, Robertson 1961, Chakravarty 1962, Asimakopulos & Weldon 1963, Wan 1971, Guillaumont 1971). Asimakopulos and Weldon discussed Harrod's (1960) new equations in some detail, but missed Harrod's attempt to break away from Ramsey.…”

Section: Introductionmentioning

confidence: 98%

See 1 more Smart Citation

Optimum Saving and Growth: Harrod on Dynamic Welfare Economics

Boianovsky

2015

SSRN Journal

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract. In the 1960s and 1970s Harrod shifted the emphasis of his research in economic dynamics from the study of business cycles (instability principle) to the investigation of the growth process. As part of that, he restated his concept of the natural growth rate as an optimum welfare rate. The present paper examines Harrod's dynamic welfare economics, built around his concept of optimum saving developed as a reaction to Ramsey's approach to capital accumulation. It is shown that, according to Harrod, the saving rate does not affect the long-run growth rate of per capita income, which is determined by technical progress. Moreover, the economy will grow at the natural (full employment) rate only if economic policy is able to bring saving to its "optimum" level in macroeconomic equilibrium. Harrod's interest in optimal growth was motivated by his double concern with growth policy in mature economies and economic development in poor countries. Terms of use: Documents in JEL classification. B22, O10

show abstract

Economic Growth

Cited by 2 publications

References 1 publication

Designing a Framework for Employment-Growth Targeting in Nigeria

Designing a Framework for Employment-Growth Targeting in Nigeria

Optimum Saving and Growth: Harrod on Dynamic Welfare Economics

Contact Info

Product

Resources

About