By Philip Pilkington
I’m currently reading Robert Solow’s paper A Contribution to the Theory of Economic Growth in which he lays out his famous Solow growth model. I don’t want to get into the actual model laid out here but instead ask what exactly this paper is trying to address. As readers of this blog will probably know I find so-called ‘long-run’ models to be about as useful for understanding the economy as toy train sets are for understanding the operations of an actual train. But in many instances the reasoning they are based on is poisonous and somewhat dangerous.
Solow starts out the paper by criticising the Harrod-Domar growth model (for an excellent overview of the Harrod-Domar model which is one of the most suggestive in macroeconomics see the following three