Economic Growth Models
... Growth Models
“It is obviously true that there are many countries, not essentially different either in the degree of security which they afford to property, or in the moral and religious instruction received by the people, which yet, with nearly equal natural capabilities, make a very different progress in wealth.”
Thoman Malthus, Essay on Population, 1887
The theory of economic growth has a long history that can be traced back at least to David Hume, Adam Smith’s older friend and colleague (Gylfason 1999, p.18). It has deep roots that extend as far back in time as economics itself (1999, p.29).
The wide dispersion of output growth rates1 across countries is a well-documented e...