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I have been looking at the Solow growth model for many years, but after reading some of the Complexity Economics stuff, the Solow's model does seem way too simple for modelling important real world questions. I was wondering if there are other common alternative models for economic growth? Can anyone provide any citations, or authors to look for?

I am particularly interested in the dynamics between industries and such. So Solow's model kinda sweeps that under the rug, as it were.

Any suggestions would be appreciated.

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    $\begingroup$ Take a look at a the textbook Economic Growth by Barro and Sala-i-Martin. $\endgroup$
    – chsk
    Aug 11, 2022 at 9:45

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I think that you should start reading the Ramsey–Cass–Koopmans model, where saving choices are made endogenous (whereas in the Solow-Swan model there were exogenous). Then, the milestone literature for modern economic growth theory is about: Product variety model of Romer (1990). A similar argument was written by Gene Grossman and Helpman (1991). Then, you have the Schumpeterian growth model developed by Aghion & Howitt (1992,1998).

Another argument that is becoming increasingly popular is the effect of automation, and artificial intelligence on long-run economic growth and income inequality (see Acemoglu and Restrepo, 2018; Prettner and Strulik, 2020, Hemous and Olsen, 2020)

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  • $\begingroup$ thanks so much for the suggestions here. Yeah, I am familiar with the Ramsey-Cass-Koopmans model, so I certainly give that another look. The recent articles references you give are really excellent and very helpful. Thanks again. $\endgroup$
    – krishnab
    Aug 11, 2022 at 21:42
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An older example that places emphasis on inter-industry relations by using an input-output model is von Neumann's growth model featured in his 1945 article "A Model of General Economic Equilibrium".

In this model, technology has constant return to scale and industries produce by using the goods of other industries, i.e., industry $i$ uses $a_{ij}$ units of industry $j$ to produce a unit of good $i$. (Inputs from all industries $j$ may be needed, this is a Leontief-type production function.) The growth rate is determined by the largest eigenvalue of the input matrix populated by these numbers $a_{ij}$.

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  • $\begingroup$ Thanks so much for this reference. I will certainly check it out. I have heard of these input-output models before, but I don't think I have ever really researched them. So thank you again for your help. $\endgroup$
    – krishnab
    Aug 11, 2022 at 21:49

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