Search results
Results from the WOW.Com Content Network
The Solow–Swan model or exogenous growth model is an economic model of long-run economic growth. It attempts to explain long-run economic growth by looking at capital accumulation , labor or population growth , and increases in productivity largely driven by technological progress.
When new as well as already-proven and reliable technologies are available, interest in new technological development temporarily declines and investment is diverted from research to maximal practical utilization. This period may be termed an application phase. It is also associated with economic growth and perhaps even an economic boom.
The rise in the allocation of resources towards education triggered a fertility decline enabling economies to allocate a larger share of the fruits of technological progress to a steady increase in income per capita, rather than towards the growth of population, paving the way for the emergence of sustained economic growth.
In the 1980s efforts have focused on the role of technological progress in the economy, leading to the development of endogenous growth theory (or new growth theory). Today, economists use Solow's sources-of-growth accounting to estimate the separate effects on economic growth of technological change, capital, and labor. [45]
Endogenous growth theory holds that investment in human capital, innovation, and knowledge are significant contributors to economic growth. The theory also focuses on positive externalities and spillover effects of a knowledge-based economy which will lead to economic development.
Technological revolution can cause the production-possibility frontier to shift outward and initiate economic growth. Pre-Industrialization The Upper Paleolithic Revolution : the emergence of "high culture" [ further explanation needed ] , new technologies and regionally distinct cultures (50,000–40,000 years ago).
His main stress is put on technological progress and new technologies as decisive factors of any long-time economic development. Each of these waves has its innovation phase which is described as a technological revolution and an application phase in which the number of revolutionary innovations falls and attention focuses on exploiting and ...
Growth accounting is a procedure used in economics to measure the contribution of different factors to economic growth and to indirectly compute the rate of technological progress, measured as a residual, in an economy. [1]