[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
IDEAS home Printed from https://ideas.repec.org/p/hec/heccee/2015-10.html
   My bibliography  Save this paper

Modeling Economic Growth: Domar on Moving Equilibrium

Author

Listed:
  • Mauro Boianovsky
Abstract
The paper investigates Evsey’s Domar’s introduction of the rate of growth as a variable in economics in the 1940s and 1950s . Domar investigated the nature of what he called the “moving equilibrium” of ec onomic processes with infinite duration. Reactions to Domar’ s approach at the time brought about methodological assertions on the distinction between models and theories. Domar’s model was an open one, in the sense that his growth equation allowed different closures. A main feature of the model was its relatively stable capital - output ratio, whi ch reflected the terms of the debate about A.H. Hansen’s stagnation thesis in the 1940s and the notion of limits to capital deepening. At the empirical level, Domar referred to some features of time series, such as the positive trend of output per capita. Differently from Harrod, t he real economy was supposed to be stable, although the model itself was not perfectly consistent with that. The estimation of the Residual (a term coined by Domar) by Solow and others led Domar to rethin k aspec ts of his original model

Suggested Citation

  • Mauro Boianovsky, 2015. "Modeling Economic Growth: Domar on Moving Equilibrium," Center for the History of Political Economy Working Paper Series 2015-10, Center for the History of Political Economy.
    • Handle: RePEc:hec:heccee:2015-10
    as

    Download full text from publisher

    File URL: http://hope.econ.duke.edu/node/1173
    File Function: main text
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mauro BoianovskyBy, 2017. "Optimum saving and growth: Harrod on dynamic welfare economics," Oxford Economic Papers, Oxford University Press, vol. 69(4), pages 1120-1137.

    More about this item

    Keywords

    Domar; growth economics; models; capital - output ratio; stability;
    All these keywords.

    JEL classification:

    • B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hec:heccee:2015-10. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Center for the History of Political Economy Webmaster (email available below). General contact details of provider: http://hope.econ.duke.edu .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.