Economic Growth

by de La Grandville, Olivier

• ISBN13: 9780521898010
• ISBN10: 0521898013
• Edition: 1st
• Format: Hardcover
• Copyright: 2009-08-31
• Publisher: Cambridge Univ Pr

Summary

How can society improve its living standards? What are the conditions necessary for prosperity? These are the questions that define the essence of growth theory. In this user-friendly book, Olivier de la Grandville provides a fascinating introduction to the theory of economic growth and shows how many results from this field are of paramount importance for society. The classical mechanics of the growth process are carefully explained, with two chapters devoted to the fundamental issue of the substitution of labor for capital in the growth process (co-written with Robert M. Solow, winner of the Nobel Prize in Economics). The book also addresses the fundamental question of the optimal investment rate of an economy. In addition, de la Grandville shows us that by unifying the descriptive and normative aspects of growth theory we can generate many fresh insights, including a proof of Adam Smith's 'Invisible Hand' conjecture.

Table of Contents

Introduction

Positive Growth Theory

The welfare of society and economic growth

The growth process

A production function of central importance

The CES production function as a general mean (in collaboration with Robert M. Solow)

Capital-labour substitution and economic growth (in collaboration with Robert M. Solow)

The long-term growth rate as a random variable, with an application to the U.S. Economy

Optimal Growth Theory

Optimal growth theory: an introduction to the calculus of variations

Other major tools for optimal growth theory: the Pontryagin Maximum Principle and the Dorfmanian

First applications to optimal growth

Optimal growth and the optimal savings rate

A Unified Approach

Preliminaries: interest rates and capital valuation

From arbitrage to equilibrium

Optimal savings: a general approach

Problems in growth: common traits between planned economies and poor countries

From Ibn Khaldun to Adam Smith, and a proof of Smith's conjecture

In conclusion: on the convergence of ideas and values through civilizations

Further readings, and data on growth

Index

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