Abstract
We have seen in Part 1 of this book that one of MM’s strengths is its interpretable ‘steady state’; namely, a balanced growth path. The economics of balanced growth was worked out in the ‘fifties and ‘sixties in terms of single-sector growth models (Solow, 1956; Swan, 1956; Meade, 1961). One conundrum which had to be solved in this literature was how to treat technological change. It turns out that only relatively specialized treatments of technological change are simultaneously consistent with both the existence of a balanced growth path and with the stylized facts characterizing modern economies.
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© 1997 Springer-Verlag Berlin Heidelberg
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Powell, A.A., Murphy, C.W. (1997). Wage Behaviour. In: Inside a Modern Macroeconometric Model. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-59069-6_5
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DOI: https://doi.org/10.1007/978-3-642-59069-6_5
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-63836-7
Online ISBN: 978-3-642-59069-6
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