Nobel Growth - An Understanding of 2025 Economics Nobel

Sengupta, Atanu and De, Sanjoy (2025): Nobel Growth - An Understanding of 2025 Economics Nobel.

Abstract

This year’s Economics Nobel is provided for finding out the cause of innovation-destructive creation of new ideas. It is also highly individualistic. First, it neglects the welfare of those who lose the race and are destroyed. Can they assimilate this new knowledge and how? If not, then… Second, it neglects the very quality of creative destruction. In a capitalist society as Harrai (2014) argues innovation is always profit motivated. The discoverer of ORS, the simple thing that saved lives of million during dysentery is not recognized. Innovation of vaccine against malaria and dengue are still on a very primitive stage. Development of learning techniques that help first generation learners have taken a back seat to the hype in Artificial Intelligence. The idea of creative destruction is appropriate to understand the evolution of the new world through a serious of continuous innovation and creation of new techniques, replacing the old ones. However, still there remain some broader aspects which the so-called growth theorists miss out. Yuval Noah Harari tries to point out some of the areas uncharted by the growth theorists. But, the ultimate vision of growth, as provided in the Mahayana doctrine is to lift all in a great vehicle.

• Item Type: MPRA Paper
• Language: English
• Keywords: Creative Destruction, Growth, Economics Nobel, Industrial Revolution, Capital
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence

References

• Acemoglu, D., Johnson, S. & Robinson, J. A. (2001). The colonial origins of comparative development: An empirical investigation. American Economic Review, 91(5), 1369–1401. https://doi.org/10.1257/aer.91.5.1369 • Acemoglu, D., Johnson, S. & Robinson, J. A. (2004). Institutions as the fundamental cause of long‐run growth (NBER Working Paper No. 10481). National Bureau of Economic Research. https://doi.org/10.3386/w1048 • Aghion, P. & Howitt, P. (1992). A model of growth through creative destruction. Econometrica, 60(2), 323–351. • Aghion, P. & Howitt, P. (1994). Growth and unemployment. The Review of Economic Studies, 61(3), 477–494. • Arora, N. (2007). In light of Nalanda. Shunya. http://www.shunya.net/Text/Blog/NalandaUniversity.htm • Arrow, K. J. (1962). The economic implications of learning by doing. The Review of Economic Studies, 29(3), 155–173. https://doi.org/10.2307/2295952 • Bardhan, P. K. (1984). Land, labor, and rural poverty: Essays in development economics. Oxford University Press. • Barkai, H. (1967). The empirical assumptions of Ricardo’s 93 percent labour theory of value. Economica, New Series, 34(136), 418–423. • Baumol, W. J. (1986). Productivity growth, convergence, and welfare: What the long-run data show. The American Economic Review, 76(5), 1072–1085. • Becker, G. S. (1964). Human capital: A theoretical and empirical analysis, with special reference to education. National Bureau of Economic Research; distributed by Columbia University Press. • Chamberlin, E. H. (1933). The Theory of Monopolistic Competition. Harvard University Press. • De Long, J. B. (1988). Productivity growth, convergence, and welfare: Comment. The American Economic Review, 78(5), 1138–1154. • Domar, E. D. (1946). Capital expansion, rate of growth, and employment. Econometrica, 14(2), 137–147. https://doi.org/10.2307/1905364 • Harari, Y. N. (2014). Sapiens: A brief history of humankind. Vintage Books. • Harrod, R. F. (1939). An essay in dynamic theory. The Economic Journal, 49(193), 14–33. https://doi.org/10.2307/2225181 • Hawking, S. (2018). Brief answers to the big questions. John Murray. • Hobsbawm, E. (2011). How to change the world: Reflections on Marx and Marxism. Yale University Press. • Kaldor, N. (1961). Capital accumulation and economic growth. In F. A. Lutz & D. C. Hague (Eds.), The theory of capital (pp. 177–222). Macmillan. • Kuznets, S. (1966). Modern economic growth: Rate, structure, and spread. Yale University Press. • Lucas, R. E. (1990). Why doesn’t capital flow from rich to poor countries? The American Economic Review, 80(2), 92–96. • Lucas, R. E., Jr. (2002). Lectures on economic growth. Harvard University Press. • Lucas, R. E., Jr. (2018). What was the Industrial Revolution? Journal of Human Capital, 12(2), 182–203. https://doi.org/10.1086/69724 • Marshall, A. (1890). Principles of economics. Macmillan and Co. • Marx, K. (1867). Capital: A Critique of Political Economy, Vol. 1 (B. Fowkes, Trans.). Penguin Books, 1990. • Marx, K. & Engels, F. (1848). The Communist Manifesto. Penguin Classics. • Mokyr, J. (1990). The Lever of Riches: Technological Creativity and Economic Progress. Oxford University Press. • Mokyr, J. (2009). The Enlightened Economy: An Economic History of Britain 1700–1850. Yale University Press. • Nagarjuna. (1969). The fundamental wisdom of the middle way: Nāgārjuna’s Mūlamadhyamakakārikā (J. Garfield & W. Edelglass, Trans.). Oxford University Press. (Original work ca. 2nd–3rd century CE) • Quesnay, F. (1972). Tableau économique (M. Kuczynski & R. L. Meek, Eds. & Trans.). Macmillan. (Original work published 1758) • Romer, P. M. (1986). Increasing returns and long-run growth. Journal of Political Economy, 94(5), 1002–1037. https://doi.org/10.1086/261420 • Ricardo, D. (1817). On the principles of political economy and taxation. John Murray. • Rostow, W. W. (1960). The stages of economic growth: A non-communist manifesto. Cambridge University Press. • Schultz, T. W. (1971). Investment in human capital: The role of education and of research. The Free Press. • Schumpeter, J. A. (1934). The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle (R. Opie, Trans.). Harvard University Press. (Original work published 1911) • Solow, R. M. (1956). A contribution to the theory of economic growth. The Quarterly Journal of Economics, 70(1), 65–94. https://doi.org/10.2307/1884513 • Solow, R. M. (1957). Technical change and the aggregate production function. The Review of Economics and Statistics, 39(3), 312–320. https://doi.org/10.2307/1926047 • Smith, A. (1776). An inquiry into the nature and causes of the wealth of nations. W. Strahan and T. Cadell. • Swan, T. W. (1956). Economic growth and capital accumulation. Economic Record, 32(2), 334–361. https://doi.org/10.1111/j.1475-4932.1956.tb00434.x