Growth Theory

15 Pages Posted: 5 May 2000 Last revised: 30 May 2021

See all articles by Boyan Jovanovic

Boyan Jovanovic

New York University - Department of Economics

Date Written: January 2000

Abstract

Growth theory offers two plausible explanations of growth. One stresses the supply of productive ideas and holds that the industrial revolution had to wait until we had thought up enough inventions to lift us into the era of modern growth. It says, roughly, that the growth of living standards depends on the growth of science. The other explanation stresses incentives: Growth could begin only when hard work and business enterprise were free of heavy taxation, of social stigma and of other interference by the government and the church. The first branch of theory is well developed; it is the second that now challenges the growth economist to explain not just growth, but the evolution of political and religious institutions and social attitudes as well.

Suggested Citation

Jovanovic, Boyan, Growth Theory (January 2000). NBER Working Paper No. w7468, Available at SSRN: https://ssrn.com/abstract=213455

Boyan Jovanovic (Contact Author)

New York University - Department of Economics ( email )

19 w 4 st.
New York, NY 10012
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
86
Abstract Views
1,422
rank
350,610
PlumX Metrics