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| Giulio Guarini |
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| ''Harrod's cumulative growth circle'' |
| ( 2011, Vol. 31 No.4 ) |
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| In this paper I aim to show through an analysis from a history of economic thought perspective that Harrod's famous model, An Essay in Dynamic Theory (1939), can be considered a fundamental example of cumulative growth circle. Having described the original model, I then go on to examine the meaning of dynamic analysis and instability in Harrod's approach, analyzing respectively the debates between Asimakopulos and Kregel and between Harrod and Keynes. Finally, I describe the main properties of Harrod cumulative growth circle by comparing Harrod's model to Domar's (1946). I argue that Harrod's growth approach is very different from the mainstream version. |
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| Keywords: Harrod, instability, dynamic analysis. |
JEL:
O4 - Economic Growth and Aggregate Productivity: General |
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| Manuscript Received : Aug 16 2011 | | Manuscript Accepted : Oct 24 2011 |
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