Abstract
The classical economists provided an account of the broad forces that influence economic growth and of the mechanisms underlying the growth process, stressing accumulation and productive investment of a part of the social surplus in the form of profits. Changes in the rate of profit were decisive for analysis of the long-term evolution of the economy. The analysis indicated that in a closed economy there is an inevitable tendency for the rate of profit to fall. In this article, the essential features of the classical analysis of the accumulation process are presented and formalized in terms of a simple model.
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Harris, D.J. (2018). Classical Growth Model. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_3037
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DOI: https://doi.org/10.1057/978-1-349-95189-5_3037
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