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The history augmented Solow model

Author

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  • Dalgaard, Carl-Johan
  • Strulik, Holger
Abstract
Unified growth theory predicts that the timing of the fertility transition is a key determinant of contemporary comparative development, as it marks the onset of the take-off to sustained growth. Neoclassical growth theory presupposes a take-off, and explains comparative development by variations in (subsequent) investment rates. The present analysis integrates these two perspectives empirically, and shows that they together constitute a powerful predictive tool vis-a-vis contemporary income differences.

Suggested Citation

  • Dalgaard, Carl-Johan & Strulik, Holger, 2013. "The history augmented Solow model," European Economic Review, Elsevier, vol. 63(C), pages 134-149.
    • Handle: RePEc:eee:eecrev:v:63:y:2013:i:c:p:134-149
    DOI: 10.1016/j.euroecorev.2013.07.001
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    More about this item

    Keywords

    Comparative development; Unified Growth Theory; Neoclassical Growth Theory;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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