Endogenous Growth Theory

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MIT Press, 1998 - Business & Economics - 694 pages
2 Reviews
"Aghion and Howitt is a real breakthrough in growth economics. This book has profound implications and should be read by anyone who is serious about studying economic growth"
-- Nicholas Crafts, Department of Economic History, London School of Economics and Political Science Advanced economies have experienced a tremendous increase in material well- being since the industrial revolution. Modern innovations such as personal computers, laser surgery, jet airplanes, and satellite communication have made us rich and transformed the way we live and work. But technological change has also brought with it a variety of social problems. It has been blamed at various times for increasing wage and income inequality, unemployment, obsolescence of physical and human capital, environmental deterioration, and prolonged recessions.

To understand the contradictory effects of technological change on the economy, one must delve into structural details of the innovation process to analyze how laws, institutions, customs, and regulations affect peoples' incentive and ability to create new knowledge and profit from it. To show how this can be done, Philippe Aghion and Peter Howitt make use of Schumpeter's concept of creative destruction, the competitive process whereby entrepreneurs constantly seek new ideas that will render their rivals' ideas obsolete.

Whereas other books on endogenous growth stress a particular aspect, such as trade or convergence, this book provides a comprehensive survey of the theoretical and empirical debates raised by modern growth theory. It develops a powerful engine of analysis that sheds light not only on economic growth per se, but onthe many other phenomena that interact with growth, such as inequality, unemployment, capital accumulation, education, competition, natural resources, international trade, economic cycles, and public policy.

  

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my book

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this one is good for theoretical background on openness and economic growth

Contents

Introduction
1
Who Is the Book For?
9
The Schumpeterian Approach
53
Innovation and Capital Accumulation
85
Growth and Unemployment
123
Some Details of Stochastic Matching
144
Endogenous Growth and Sustainable Development
151
Existence of SteadyState with Environmental Pollution
165
Theory
415
The Private Management of Innovation
449
Public Aid to Innovation
485
Solutions
515
Chapter 2
536
Chapter 3
545
Chapter 4
554
Chapter 6
562

Learning by Doing and Secondary Innovations
173
Problems
195
Market Structure
205
Problems
225
Growth and Cycles
233
Problems
270
Distribution and Political Economy
279
Education
327
Growth in Open Economies
365
Testing for Endogenous Growth
403
Chapter 7
574
Chapter 8
581
Chapter 9
598
Chapter 10
607
Chapter 11
622
Chapter 13
632
Chapter 14
642
References
665
Index
689
Copyright

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About the author (1998)

Peter Howitt is Lyn Crost Professor of Social Sciences at Brown University. Howitt is coauthor (with Philippe Aghion) of Endogenous Growth Theory (MIT Press, 1997).

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