Customer Reviews

Growth Theory: An Exposition

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4 star:		(1)
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1 star:		(1)

 

 

This is a masterly study. Solow speaks about the old neoclassical growth theory in the first half of the book and then goes on in the second half to review the developments of new growth theory that started in the mid eighties. He comments on the essence of Lucas' work (on human capital), Romer's work (on endogenous technical change), the work of Grossman and Helpman (on quality ladders) and that of Aghion and Howitt (on creative destruction). These references have now reached the status of classics in endogenous growth theory. Solow provides penetrating insights into the new developments. The book is a must for any student of the subject interested in traversing the bridge that connects the old to the new growth theory.

I am compelled to write a review after reading with utter disbelief the negative comments that some fool posted above.
He/she rambles how Solow's book does not account for human capital. Well, if that person had actually bothered reading the book (or even taking some basic growth theory classes, but after reading his/her syntax we can safely assume that it is too much to be wished for), he/she would realize that the book DOES INDEED cover various variations/enrichments of the standard Solow, including indeed the Lucas Human capital variation.

This book is a nice addition for any growth economist/student library. To the "reviewer" above: get an education before you start even THINKING about criticizing economists of professor Solow's stature.

This book is a classical book, it's very important to read because is one of the most important theory, if you are agree or disagree no matter. If you want criticizing the neoclassical theory you need to understand all the Solow argument. I'm not very convinced of this theory, but it's fundamental to read this book.

In his book Solow describes his growth-theory. But this theory already is out of time. It does not apply to many countries. Why not you might ask. Well first, Solow leaves a very important variable out, namely human capital. Second, Solow makes assumptions, which obviously will never hold, like an equal productionfunction for every country but also equal technological availability for each country. I do not have to explain why this will not hold for it speaks for itself. Many third-world countries have based their policies on Solow's growth-theory in the sixties, seventies and eigthies, but without any succes. It is time for these countries to change policies and to discover other growth and development strategies to catch-up with developed countries, specially with ecommerce comming up.