Chapter

Balanced Growth and Efficient Programme of Very‐Long‐Run Growth

Michio Morishima

in Equilibrium, Stability and Growth

Published in print March 1963 | ISBN: 9780198281450
Published online November 2003 | e-ISBN: 9780191596650 | DOI: http://dx.doi.org/10.1093/0198281455.003.0006
 Balanced Growth and Efficient Programme of Very‐Long‐Run Growth

Show Summary Details

Preview

This chapter and the previous one are devoted to an analysis of the von Neumann model of economic expansion, which may be considered as a variant of the dynamic Leontief system. The original von Neumann model is a slave system, in which the object of production is mere enlargement at the subsistence level of wages. In Ch. 6, the Turnpike Theorem, which asserts that there is a long‐run tendency for the optimum growth path of an economy to approximate to the von Neumann path of steady proportional growth, is proved for a von Neumann–Leontief model and for a von Neumann–Gale model.

Keywords: balanced growth; balanced growth models; economic expansion; economic growth; long‐run growth; subsistence wages; Turnpike Theorem; von Neumann–Gale model; von Neumann model; von Neumann–Leontief model

Chapter.  21538 words.  Illustrated.

Subjects: Economic Development and Growth

Full text: subscription required

How to subscribe Recommend to my Librarian

Buy this work at Oxford University Press »

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.