This study introduces paper money under the gold standard into the neoclassical growth theory
. Rather than assuming some demand function for money like in Barro's approach, we derive money demand from the optimal decision of households.
The theoretical framework used is the neoclassical growth theory
with its aggregate sector production functions and its aggregate household types.
(1994), "Endogenous Growth Theory
: Intellectual Appeal and Empirical Shortcomings", Journal of Economic Perspectives,8
Endogenous Models that explain growth with human capital, develop growth theory
by implying that the growth rate also depends on the rate of return to human capital, as well as physical capital (Gokal & Hanif, 2004).
The endogenous growth theory
was developed after the '80s, mainly by Paul Romer, Robert Lucas and Robert Barro, becoming a major area of study of economics.
Aghion, Philippe and Peter Howitt (1998) Endogenous Growth Theory
. Cambridge, Massachusetts.
Conventional theories are focused on Economics or synthesised the mainstream of Keynesianism and growth theory
onto a classical and neoclassical framework.
A growth theory
is incomplete if it does not have some frame of a welfare postulate.
Back in 1996 he was a relatively unknown quantity, a very private man perceived as a dour Scot whose only reported spare-time pursuits involved sitting in libraries swotting up on post neo-classical endogenous growth theory
and Convergence Over Innovation-led Growth
Boettke and Rosolino Candela on the law as a factor of production), growth theory
The third chapter explains precisely how the neoclassical theory was conceived as an exogenous factor in the technological growth theory
. Klundert also acknowledges the new literature which offers alternate explanations to technological change, such as learning-by-doing and investment in research and development.