On the Mechanics of Economic Development

  title={On the Mechanics of Economic Development},
  author={Robert E. Lucas},
Some Models of Economic Growth and Capital Accumulation
In this paper we consider some facts related to the models of economic growth. A generalization of the golden rule of capital accumulation and dynamic inefficiency is proposed. We analyze the
Human Capital and Economic Growth in the Neo-Classical Empirical Models
The paper reviews the neoclassical approach in the empirical studies of the impact of human capital on economic growth developed in the last fifteen years. It contains a brief discussion on the
A Microeconomic Mechanism for Economic Growth
This paper constructs a dynamic general equilibrium model in which economic growth is explained by the evolution of the division of labor. The relationships among the accumulation of human capital,
Natural Capital in Economic Models
The goal of our paper is to make a critical analysis of selected growth models that use the notion of natural capital and to construct the alternative model. In particular we treat the natural
This paper provides an extension of the aggregative neoclassical model of growth a la So low (1956) with a view to elucidating important implications of investment in human capital. It is shown that
A Kind of Neither Keynesian Nor Neoclassical Model (5): The Path of Economic Growth
Traditional macroeconomic theory is difficult to analyze the long-term growth and short-term decisions of output in a unified model. In this paper, the concept of “unit resource output” is proposed
Endogenous Growth and International Trade: A Survey
Economists have long been interested in searching for the causes and effects of the growth of income and wealth of countries. The relevant literature gradually was divided nto two banches: economic
Economic growth and the return to capital in developing economies
An important stylized fact of economic growth is that the rate of return to capital is relatively constant across countries and over time. This paper provides an explanation using a model of growth


Learning by Doing and the Introduction of New Goods
A dynamic general equilibrium model is developed in which goods are valued according to the characteristics they contain, the set of goods produced in any period is endogenously determined, and
Increasing Returns and Long-Run Growth
  • P. Romer
  • Economics
    Journal of Political Economy
  • 1986
This paper presents a fully specified model of long-run growth in which knowledge is assumed to be an input in production that has increasing marginal productivity. It is essentially a competitive
Improved International Comparisons Of Real Product And Its Composition: 1950–1980
A set of international comparisons is developed for 124 countries over the three post World War II decades, 1950‐80. A Data Table is presented which gives, for most countries and most years, real
Productivity Growth, Convergence, and Welfare: What the Long-run Data Show
Maddison's 1870-1979 data are analyzed, showing the historically unprecedented growth in productivity, GDP per capita and exports and the remarkable convergence of productivities of industrialized
The Economic Implications of Learning by Doing
It is by now incontrovertible that increases in per capita income cannot be explained simply by increases in the capital-labor ratio. Though doubtless no economist would ever have denied the role of
Measurement Bias in Price Indexes for Capital Goods
The official U.S. price deflators for investment goods continue to be based on defective methodology, despite frequent criticism in recent years. This paper contributes new price information, which
A Theory of Life Earnings
  • S. Rosen
  • Economics
    Journal of Political Economy
  • 1976
This paper summarizes an empirical investigation of lifetime earnings of U.S. male high school and college graduates based on the theory of optimum capital accumulation. Suppose we observe the
Phases of capitalist development
Until the eighteenth century, most of the world was caught in a Malthusian trap. Population rose about 0.04 per cent a year over the two millenia preceding 1700, and world income no faster. Since
The Economy of Cities
Studying the economy of cities is relevant for a number of reasons. First of all, because most of the planet's population is grouped in them. Secondly, because they concentrate the main social