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Article Dans Une Revue Journal of Philosophical Economics Année : 2013

Growth theory after Keynes, part I: the unfortunate suppression of the Harrod-Domar model

Résumé

After Harrod and Domar independently developed a dynamic Keynesian circular flow model to illustrate the instability of a growing economy, mainstream economists quickly reduced their model to a supply side-only growth model, which they subsequently rejected as too simplistic and replaced with Solow's neoclassical growth model. The rejection process of first diminishing the model and then replaced it with a neoclassical alternative was similar to how the full Keynesian macroeconomic paradigm was diminished into IS-LM analysis and then replaced by a simplistic neoclassical framework that largely ignored the demand side of the economy. Furthermore, subsequent work by mainstream economists has resulted in a logically inconsistent framework for analyzing economic growth; the popular endogenous growth models, which use Schumpeter's concept of profit-driven creative destruction to explain the technological change that Solow left as exogenous, are not logically compatible with the Solow model.
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Dates et versions

hal-03710306 , version 1 (30-06-2022)

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Paternité - Pas d'utilisation commerciale - Partage selon les Conditions Initiales

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Hendrik van den Berg. Growth theory after Keynes, part I: the unfortunate suppression of the Harrod-Domar model. Journal of Philosophical Economics, 2013, Volume VII Issue 1 (1), ⟨10.46298/jpe.10650⟩. ⟨hal-03710306⟩
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