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The Facts of Economic Growth - Stanford University
web.stanford.edulast 150 years is a key characteristic of the frontier. All modern theories of economic growth—for example, Solow (1956), Lucas (1988), Romer (1990), and Aghion and Howitt (1992)—are designed with this fact in mind. The sustained growth in Fig. 1 also naturally raises the question of whether such
THEORIES OF ECONOMIC GROWTH - INSEAD
flora.insead.eduTheories of Economic Growth File GROW174.TXTas printed oo February 5, 1997 Page 2 The Historical Background It is too often forgotten that economic growth has been a relatively episodic phenomenon ... it will be reduced automatically as income is diverted into savings to finance new supply. Similarly, if consumer demand falls momentarily