Endogenous Verses Exogenous Growth Theories
In neoclassical growth models, the sources of growth, is exogenous
usually “technology”. Such theoretical models hence are able to describe
how an economy grows, but not why it grows. To overcome this
shortcoming, several growth models have been developed that make growth
an endogenous variable. In contrast to neoclassical growth theory,
endogenous growth theory argues that policy measures (such as subsidies
on R&D and education) can have an increase long-run growth rate of
an economy.
Write an essay
· Develop a presentation that highlights the main points of endogenous and exogenous growth theories.
· Additionally, with in the presentation provide an analysis of the
impact of government policy on the long-term growth rate of an economy.
On slide content should be limited to 3 – 5 summary bullets per slide. A
detailed discussion of the slide content needs to be provided within
the speaker notes section of the slide