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Endogenous Growth: A Knife Edge or the Razor's Edge?*
Author(s) -
Dalgaard CarlJohan,
Kreiner Claus Thustrup
Publication year - 2003
Publication title -
scandinavian journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.725
H-Index - 64
eISSN - 1467-9442
pISSN - 0347-0520
DOI - 10.1111/1467-9442.00005
Subject(s) - pessimism , economics , keynesian economics , neoclassical economics , positive economics , endogenous growth theory , economic stagnation , enhanced data rates for gsm evolution , development economics , political science , economic growth , law , human capital , philosophy , epistemology , politics , telecommunications , computer science
According to much of the recent growth literature, the dramatic worldwide decline in fertility currently taking place should ultimately lead to global economic stagnation. This pessimistic prediction is not shared by the original innovation‐based growth literature. In recent years, however, this strand of the literature has been criticized for resting on implausible knife‐edge assumptions and for its inconsistency with available evidence. In this paper, we argue that this conclusion is unwarranted.