TY  - JOUR
AU  - McCallum,Bennett T.
TI  - Neoclassical vs. Endogenous Growth Analysis: An Overview
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5844
PY  - 1997
Y2  - May 1997
UR  - http://www.nber.org/papers/w5844
L1  - http://www.nber.org/papers/w5844.pdf
N1  - Author contact info:
Bennett T. McCallum
Tepper School of Business, Posner 256
Carnegie Mellon University
Pittsburgh, PA 15213
Tel: 412/268-2347
Fax: 412/268-6830
E-Mail: bm05@andrew.cmu.edu
AB  - This paper begins with an exposition of neoclassical growth theory, including several analytical results such as the distinction between golden-rule and optimal steady states.  Next it emphasizes that the neoclassical approach fails to provide any explanation of steady-state growth in per capita values of output and consumption, and also cannot plausibly explain actual growth differences by reference to transitional episodes.  Three types of endogenous growth models, which attempt to provide explanations of ongoing per-capita growth, are presented and discussed.  The likelihood of strictly justifying steady-state growth with these models is very small, since it would require highly special parameter values, but the models' predictions may be reasonably accurate nevertheless.
ER  -