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What are the differences between the neoclassical and structural evolutionary theories of economic growth?

josh
June 19, 2015 0 Comment

What are the differences between the neoclassical and structural evolutionary theories of economic growth? Articulate each theory clearly and point out the differences. What are the implications of looking at the long-run economic growth process using each of the theories? What roles do diminishing, constant and increasing returns play in these theories? What are the policy implications of looking at growth in these two ways?

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Instructions: Answer all three questions below in a word processed document. You have one week. You may hand in a hard copy to my office SCI 263. Do not email a copy of your exam to Blackboard.

What are the differences between the neoclassical and structural evolutionary theories of economic growth? Articulate each theory clearly and point out the differences. What are the implications of looking at the long-run economic growth process using each of the theories? What roles do diminishing, constant and increasing returns play in these theories? What are the policy implications of looking at growth in these two ways? (Use diagrams, graphs and equations where appropriate.)

Why did the Industrial Revolution occur when and where it did and not elsewhere? What is your conclusion about the appropriate policy advice to give to economies trying to develop today?

Define technological complementarity. What is the difference among the concepts of technological complementarity, spillovers, externalities, combinatorics and concatenation? Explain why technological complementarities and uncertainty exist and what the implications of these are for the process of technological change and economic growth. How are the above concepts related to each other in the production of knowledge? What are the implications for thinking about economic growth processes with these factors in play?

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