We're Open
+44 7340 9595 39
+44 20 3239 6980

Differences between Neoclassical and Structural Evolutionary Economic Growth Theories

  100% Pass and No Plagiarism Guaranteed

Differences between Neoclassical and Structural Evolutionary Economic Growth Theories

The neoclassical economic theory of growth was developed by post Keynesian economic theorists. The theory tries to determine the long-run economic changes.  The theory incorporates technological growth and formation of capital in determining the economic progress. On the other hand, evolutionary theory approaches economic growth through theorizing the changes in firm’s behavior over a period of time. The theory investigates the historical performance of the economy in order to predict the expected growth. The major difference between the two theories is that neoclassical theory holds that the long-run future economic change translates into economic growth. Based on the evolutionary theory, economic growth is purely uncertain and is determined by the economic environment. Evolutionary theory does not guarantee economic growth and includes a risk factor in its equations (Bergh, 2007).

Both theories view technological advancements as a growth factor in the economic development. Neoclassical model of economic growth views technological growth as the chief driver of economic progress. Conversely, evolutionary theory argues that technological advance does not guarantee economic progress. Technological growth is viewed as an exogenous factor in development of the economy and does not necessarily inspire growth of the economy. Neoclassical economic theory assumes a steady and constant growth frontier for production, income as well as individual worker’s output. The structural evolutionary theory however takes a more diverse approach to growth and focuses on the heterogeneity of the economy. The model theorists argue that individual firms in the economy are faced by different set of facts hence cannot homogenize production growth, output or income growth (Bergh, 2007).

According to Zumbansen and Calliess (2011), there are varying implications drawn from analyzing the two economic growth theories. The structural evolutionary theory holds that in the long-run the exponential growth experienced today will decline to a steady state. The theory therefore implies that in the long-run there will be no economic growth. This can further be explained using a function of production developed by Cobb-Douglas…”


100% Plagiarism Free & Custom Written,
Tailored to your instructions


International House, 12 Constance Street, London, United Kingdom,
E16 2DQ

UK Registered Company # 11483120


100% Pass Guarantee

STILL NOT CONVINCED?

View our samples written by our professional writers to let you comprehend how your work is going to look like. We have categorised this into 3 categories with a few different subject domains

View Our Samples

We offer a £ 2999

If your assignment is plagiarised, we will give you £ 2999 in compensation

Recent Updates

Details

  • Title: Differences between Neoclassical and Structural Evolutionary Economic Growth Theories
  • Price: £ 99
  • Post Date: 2021-05-12T12:01:19+00:00
  • Category: Research Paper Queries
  • No Plagiarism Guarantee
  • 100% Custom Written

Customer Reviews

Differences between Neoclassical and Structural Evolutionary Economic Growth Theories Differences between Neoclassical and Structural Evolutionary Economic Growth Theories
Reviews: 5

A masterpiece of assignment by , written on 2020-03-12

Writing is not my field. I take help from this website for my accounting assignment. The work is good and I scored good grades in it. Thank you from the bottom of my heart.
Reviews: 5

A masterpiece of assignment by , written on 2020-03-12

I had wasted so much money for poor quality work on other sites that I became despair to find a reliable one. I landed on Insta Research and finally, I am fully satisfied after ages from their quality of the work and instant response. Also, the rates are handy. Great going guys!