New View of Economic Growth

This book presents a major new theory of economic growth. Orthodox theories explain both the level and growth of output by three main variables: employment, the capital stock, and technical progress. The new theory does not attempt to explain the level of output, only its change over a given period, and so is more historical. The capital stock is not of central interest, and there is no separate rate of technical progress. The two main explanatory variables are the growth of employment and the rate of investment. As well as demolishing existing orthodox theories, the book demonstrates that the new theory can be used to explain why growth rates differ between different countries (mainly the United States, Japan, and the United Kingdom) and periods, and why the shares of profits and wages differ. Verdoon's and Fabricant's Laws relating to productivity growth in different industries; taxation; optimum growth; and the productivity slow-down after 1973 are also discussed.Table of ContentPART I MATERIALS; 1. Growth Concepts; 2. Growth Facts; PART II DEMOLITION; 3. Orthodox Growth Theories; 4. Some Unorthodox Growth Theories; PART III CONSTRUCTION; 5. Investment, Invention, and Scientific Discovery; 6. A New Growth Model; 7. The Rate of Return; 8. The Determinants of the Share of Investment in Output and the Complete Growth Model; 9. Growth of the Firm and Industry; PART IV USE; 10. Why Growth Rates Differ, I; 11. Why Growth Rates Differ, II; 12. Verdoorn's and Kaldor's Laws; 13. Fabricant's Laws; 14. Taxation and Growth; 15. The Optimum Rate of Investment and Growth; 16. The Slow-down in Productivity Growth after 1973; Statistical Appendix; References; Index