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Handbook of Regional Science pp 1–23Cite as

Neoclassical Regional Growth Models

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Abstract

This chapter provides an overview of the literature on neoclassical growth, starting with the simple Solow-Swan model and highlighting the main components of the neoclassical growth process. It considers the assumptions, predictions, and limitations of the Solow-Swan model and discusses several extensions that address some of these limitations and, in particular, those that are unrealistic for a regional growth setting. Several more complex models are presented and discussed, including a model that allows for exogenous technological progress, one that includes a broader definition of capital to also encompass human capital, and one that relaxes the assumption of a closed economy. Finally, the chapter considers a more complex model of neoclassical growth, the Ramsey-Cass-Koopmans model, which incorporates consumer behavior and allows for an endogenously determined savings rate.

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Authors and Affiliations

  1. University of Cambridge, Cambridge, UK

    Maria Abreu

Authors
  1. Maria Abreu
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Correspondence to Maria Abreu .

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Editors and Affiliations

  1. Institute for Economic Geography and GIScience, Vienna University of Economics and Business, Vienna, Austria

    Manfred M. Fischer

  2. and Business Administration Department of Spatial Economics, Free University Faculty of Economics, Amsterdam, The Netherlands

    Peter Nijkamp

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Abreu, M. (2019). Neoclassical Regional Growth Models. In: Fischer, M., Nijkamp, P. (eds) Handbook of Regional Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-36203-3_12-1

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  • DOI: https://doi.org/10.1007/978-3-642-36203-3_12-1

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  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-36203-3

  • Online ISBN: 978-3-642-36203-3

  • eBook Packages: Springer Reference Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences

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