Endogenous growth and structural economic dynamics: a comparative analysis

Schilirò, Daniele (2026): Endogenous growth and structural economic dynamics: a comparative analysis.

Abstract

Beginning with the Solow growth model as a baseline, this paper analyzes Paul Romer’s endogenous growth theory and Luigi Pasinetti’s structural economic dynamics framework, emphasizing their innovative contributions to the field. Although these theories differ methodologically and epistemologically, they share a fundamental emphasis on technical progress—defined as technological knowledge—as the primary driver of growth. This study highlights their commonalities, specifically their focus on knowledge, learning, and skills as the factors driving technological progress, though Pasinetti adopts a more evolutionary perspective. Finally, the paper contrasts their specific analytical toolkits: Romer’s reliance on the aggregate production function and the hypothesis of rational expectations versus Pasinetti’s utilization of input-output analysis, vertically integrated sectors, and the "natural system" of production.

• Item Type: MPRA Paper
• Language: English
• Keywords: Solow exogenous growth model; Romer’s endogenous growth; Pasinetti’s structural economic dynamics; technological change; knowledge; learning
• Subjects: E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General

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