Economic Growth Models

The primary purpose of bringing out the book Economic Growth Models is to present a clear, straightforward, and current account of the main models of the growth theory, which have become standard tools for policy design and evaluation at central banks and governments around the world. An attempt has been made to keep the students perspective constantly in mind and to make the explanations both intuitively appealing and rigorous.

The book presents a detailed discussion of theoretical issues involved in deterministic and stochastic, exogenous and endogenous growth models. A detailed description of the analytical and numerical approach for solving each of the different models covered in this book has been provided so that they can be used as reference for forecasting purposes.

The book presents the structure of the model first, and thereafter the equilibrium conditions are analytically characterised. Equilibrium conditions are interpreted in detail, with special emphasis on the role of the transversality condition in guaranteeing the stability of the implied solution. For the benefit of the reader, most models have been presented and analysed in continuous as well as in discrete timeframe.

In analysing the growth models, diagrams and mathematics have been used extensively in the book. The idea that any dynamic model has time series implications that can be put to test with actual data, has influenced the conception of this book. A major objective of the text is to encourage students to think of policy issues in terms of macroeconomic models, which requires the art of selecting an appropriate modelone which captures the essential features of the problem, and which can be manipulated using tools available to the student. Various concepts and models have been presented in a simple language and lucid manner for easy understanding by the readers.

The book will ably serve the needs of B.A. (Hons.) and M.A. students of economics, as well as researchers who are working with growth models of different kinds. It will also prove extremely helpful to those preparing for various competitive examinations.