Progress Theory and Long-Run Habit of Economic system

 Growth Theory and Long-Run Behavior of Economy Article



Growth Theory and Long-Run Behavior of Economy

Antara Islam


Institute of Business AdministrationJahangirnagar University

Essay On

Growth Theory and Long-Run Habit of Economic climate

Submitted To:

Dr . ShuddhasattwaRafiq

Study course Instructor


Submitted By:

Antara Islam

Class ID: 2795

Batch 21

Date of Submission

14 June, 2013

Institute of Business Operations

Jahangirnagar University or college

Letter of Transmittal

Summer 11, 2013

Dr . ShuddhasattwaRafiq


Commence of Business Administration

Jahangirnagar University

Subject: Submission of the essay in Growth Theory and the Long-Run Behavior of Economy.


This can be a pleasure of mine to submit the essay on Growth Theory and the Long-Run Tendencies of Overall economy. Theessay highlights how development theory clarifies the long-run behavior of economy. This kind of essay is usually developed to strengthen the fact that growth theory explains the long-run behavior of economic system with provided data and models. The essay as well discusses Neo-classical growth designs and also talks about what the term Long-Run identifies. I want to thank you for giving me this wonderful chance to work on this kind of essay. It is often an exciting encounter and a fantastic way to broaden my knowledge. If there is any issue regarding the composition, I will be privileged to answer these people.

Sincerely Yours

Antara Islam (2795)


At first, I would like to appreciate the Changeless Allah to be able to submit my composition on time. I possess my healthiest gratitude on the Director of your Institute and our study course instructor of Macro Economics, Dr . ShuddhasattwaRafiq, Associate Professor, Institute of Business Administration, Jahangirnagar School for his guidance, support and the know-how he distributed to us. We would also like to express my greatest gratitude to all or any those allowed me to to prepare this kind of essay and shared all their experience with me to make this kind of more effective. It will be very difficult to complete this essay with no their correct guidance and their support.

Stand of Contents

Executive Overview | 5| Introduction:

1 . 1: Neoclassical Growth Model| 6

1 ) 2: Assumptions of Neoclassical Model| several

1 . three or more: Representation in the Neoclassical Expansion Model| almost eight

1 . 4: Long Run| 9

Books Review | 10

Tendencies of Economic climate Explained Through Neoclassical Expansion Theory| 2 . 1: Financial Growth| 14

2 . a couple of: The Determinants of Long-run Economic Growth2. 3: Just how Growth Theory Explains Long haul Behavior of the Economy2. 5: Mathematical framework2. 5: Macro-Production FunctionsImplementation of Growth Theory in the Economy of Developed Countries| 1213131415| Summary | 16

Reference | 18



Executive Summary

The neo-classical progress model is a type of economic models of long-run economic growth set inside the framework of neoclassical economics. The style is also called Solow-Swan progress model or exogenous growth model. Long-run behavior of your economy could be explained using the neoclassical development model. The[desktop] explains the long-run economic growth by simply analyzing productivity, population expansion, capital deposition and scientific progress of the country. The model exogenously determines the long –run growth of the economy. The model works on the prediction that the economy always converge towards a steady level of expansion, which is dependent on the rate of technological improvement and also the level of labor force growth. The neoclassical growth theory describes how a steady growth charge can be achieved with 3 major driving a car forces. As stated before those forces are capital, labor and technology. Those driving a car forces from the model may be used to explain the long-run habit of an economy. This article explains how a long-run habit of an economy can be discussed using the growth theory.


1 . you: Neoclassical...

References: 2 . Lucas, R. At the. 1988. " On the mechanics of monetary development, " Journal of monetary economics, 22(1), 3-42.

3. Ayres, Robert (1989). Technological Changes and Very long Waves. s. 9


7. David. S. (1969). The Unbound Prometheus: Technological Change and Industrial Creation in Western Europe by 1750 to the Present. Cambridge, Ny: Press Association of the College or university of Cambridge. ISBN 0-521-09418-6


9. Ayres, Robert U.; Warr, Benjamin (2004). Accounting for Growth: The Role of Physical Work

10. Grubler, Arnulf (1990)

11. The singer, George Rogers. The Vehicles Revolution, 1815-1860. ISBN 978-0873321013.

12. Wells, David A. (1890). The latest Economic Improvements and Their Effect on Production and Distribution of Wealth and Well-Being of Society. Nyc: D. Appleton and Co. ISBN 0543724743.

13. Atack, Jeremy; Passell, Peter (1994). A New Economic View of yankee History. Nyc: W. Watts. Norton and Co. ISBN 0-393-96315-2

14. Beaudreau, Bernard C

seventeen. Trevor Watts. Swan (1956). " Economic Growth and Capital Build up ', Monetary Record, thirty-two, pp. 334–61.

18. Kendrick, John T. (1961). Output Trends in the United States. Princeton University Press to get NBER. g. 111.

nineteen. Ayres, Robert U. (1998). Turning Point: an End to the Progress Paradigm. London, uk: Earthscan Magazines. pp. 193–4.

20. ElhanahHelpman, The Mystery of Financial Growth, Harvard University Press, 2004.

21 years old. Harry G. Saunders, " The Khazzoom-Brookes postulate and neoclassical growth", The Energy Log, October you, 1992.

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