THE GENESIS OF THE NEOCLASSICAL MODELS OF GROWTH
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The paper provides a Central European reader with some information concerning the knowledge in the field of economic growth. Information on neoclassical growth models (the 'Solow-Swan model' and the 'Ramsey model') is given. We present the production functions, the dynamic equations of the models, the steady state, and transitional dynamics. We discuss three variants of the introduction of the technological advance to the 'Solow-Swan model' and possible extensions of this model. The problematic behaviour of the neoclassical models in an open-economy setup is mentioned. The paper selects the 'AK model', which does not exhibit transitional dynamics, and the 'Uzawa-Lucas model', which on the contrary exhibits transitional dynamics, as examples of endogenous models. We discuss the modelling of the technological change and technological diffusion.
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