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Solow's Harrod: Transforming macroeconomic dynamics into a model of long-run growth

Publication ,  Journal Article
Halsmayer, V; Hoover, KD
Published in: European Journal of the History of Economic Thought
July 3, 2016

Abstract: Modern growth theory derives mostly from Solow's “A Contribution to the Theory of Economic Growth” (1956). Solow's own interpretation locates its origins in his view that Harrod's growth model implied a tendency toward progressive collapse of the economy. He formulates his view in terms of Harrod's invoking a fixed-coefficients production function. We challenge Solow's reading of Harrod's “Essay in Dynamic Theory,” arguing that Harrod's object in providing a “dynamic” theory had little to do with the problem of long-run growth as Solow understood it, but instead addressed medium-run fluctuations, the “inherent instability” of economies. Solow's interpretation of Harrod was grounded in a particular culture of understanding embedded in the practice of formal modelling that emerged in economics in the post-Second World War period. Solow's interpretation, which ultimately dominated the profession's view of Harrod, is a case study in the difficulties in communicating across distinct interpretive communities and of the potential for losing content and insights in the process. Harrod's objects – particularly, of trying to account for a tendency of the economy toward chronic recessions – were lost to the mainstream literature.

Duke Scholars

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Published In

European Journal of the History of Economic Thought

DOI

EISSN

1469-5936

ISSN

0967-2567

Publication Date

July 3, 2016

Volume

23

Issue

4

Start / End Page

561 / 596

Related Subject Headings

  • History of Social Sciences
  • 5002 History and philosophy of specific fields
  • 3803 Economic theory
  • 3801 Applied economics
  • 2202 History and Philosophy of Specific Fields
  • 1401 Economic Theory
 

Citation

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Halsmayer, V., & Hoover, K. D. (2016). Solow's Harrod: Transforming macroeconomic dynamics into a model of long-run growth. European Journal of the History of Economic Thought, 23(4), 561–596. https://doi.org/10.1080/09672567.2014.1001763
Halsmayer, V., and K. D. Hoover. “Solow's Harrod: Transforming macroeconomic dynamics into a model of long-run growth.” European Journal of the History of Economic Thought 23, no. 4 (July 3, 2016): 561–96. https://doi.org/10.1080/09672567.2014.1001763.
Halsmayer V, Hoover KD. Solow's Harrod: Transforming macroeconomic dynamics into a model of long-run growth. European Journal of the History of Economic Thought. 2016 Jul 3;23(4):561–96.
Halsmayer, V., and K. D. Hoover. “Solow's Harrod: Transforming macroeconomic dynamics into a model of long-run growth.” European Journal of the History of Economic Thought, vol. 23, no. 4, July 2016, pp. 561–96. Scopus, doi:10.1080/09672567.2014.1001763.
Halsmayer V, Hoover KD. Solow's Harrod: Transforming macroeconomic dynamics into a model of long-run growth. European Journal of the History of Economic Thought. 2016 Jul 3;23(4):561–596.

Published In

European Journal of the History of Economic Thought

DOI

EISSN

1469-5936

ISSN

0967-2567

Publication Date

July 3, 2016

Volume

23

Issue

4

Start / End Page

561 / 596

Related Subject Headings

  • History of Social Sciences
  • 5002 History and philosophy of specific fields
  • 3803 Economic theory
  • 3801 Applied economics
  • 2202 History and Philosophy of Specific Fields
  • 1401 Economic Theory