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The AK model, which is the simplest endogenous model, gives a constant-savings rate of endogenous growth and assumes a constant, exogenous, saving rate. It models technological progress with a single parameter (usually A).
The AK model of economic growth is an endogenous growth model used in the theory of economic growth, a subfield of modern macroeconomics.In the 1980s it became progressively clearer that the standard neoclassical exogenous growth models were theoretically unsatisfactory as tools to explore long run growth, as these models predicted economies without technological change and thus they would ...
The Uzawa–Lucas model is an economic model that explains long-term economic growth as consequence of human capital accumulation. Developed by Robert Lucas, Jr., [1] building upon initial contributions by Hirofumi Uzawa, [2] it extends the AK model by a two-sector setup, in which physical and human capital are produced by different technologies.
The Harrod–Domar model was the precursor to the exogenous growth model. [ 4 ] Neoclassical economists claimed shortcomings in the Harrod–Domar model—in particular the instability of its solution [ 5 ] —and, by the late 1950s, started an academic dialogue that led to the development of the Solow–Swan model .
It combines aspects of the Harrod–Domar growth model with the Phillips curve to generate endogenous cycles in economic activity (output, unemployment and wages) unlike most modern macroeconomic models in which movements in economic aggregates are driven by exogenously assumed shocks. Since Goodwin's publication in 1967, the model has been ...
IS/LM model, a macroeconomic tool that demonstrates the relationship between interest rates and real output in the goods and services market and the money market; Rostovian take-off model; Exogenous growth model; Endogenous growth theory, holds that economic growth is primarily the result of endogenous and not external forces
Unified growth theory was developed in light of the alleged failure of endogenous growth theory to capture key empirical regularities in the growth processes and their contribution to the momentous rise in inequality across nations in the past two centuries.
The basic properties of Kaldor's growth model are as follows: Short period supply of aggregate goods and services in a growing economy is inelastic and not affected by any increase in effective monetary demand. As it is based on the Keynesian assumption of “full employment”. The technical progress depends on the rate of capital accumulation.