Transcription of THEORIES OF ECONOMIC GROWTH - INSEAD
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THEORIES OF ECONOMIC GROWTH - INSEAD
THEORIES OFECONOMIC GROWTHbyR. U. AY S*97/13/EPSThis working paper was published in the context of INSEAD 's Centre for the Management of EnvironmentalResources, an R&D partnership sponsored by Ciba-Geigy, Danfoss, Otto Group and Royal Dutch/Shell andSandoz AG.* Sandoz Professor of Management and the Environment at INSEAD , Boulevard de Constance, 77305 Fontainebleau Cedex, working paper in the INSEAD Working Paper Series is intended as a means whereby a faculty researcher'sthoughts and findings may be communicated to interested readers. The paper should be consideredpreliminary in nature and may require at INSEAD , Fontainebleau, of ECONOMIC GrowthRobert U. AyresCenter for the Management of Environmental ResourcesINSEADF ontainebleau, FranceFebruary 1997 AbstractThis paper is a review of the current state of the theory of ECONOMIC GROWTH .
Theories 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
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