Working Paper

Rethinking the Concept of Long-Run Economic Growth

Christian Groth, Karl-Josef Koch, Thomas Steger
CESifo, Munich, 2006

CESifo Working Paper No. 1701

This paper argues that growth theory needs a more general “regularity” concept than that of exponential growth. This offers the possibility of considering a richer set of parameter combinations than in standard growth models. Allowing zero population growth in the Jones (1995) model serves as our illustration of the usefulness of a general concept of “regular growth”.

CESifo Category
Fiscal Policy, Macroeconomics and Growth
Keywords: exponential growth, arithmetic growth, regular growth, semi-endogenous growth, knife-edge restrictions
JEL Classification: O310,O400,O410