“On the Mechanics of Economic Development”
E455404
“On the Mechanics of Economic Development” is a seminal 1988 paper by economist Robert Lucas Jr. that helped found modern endogenous growth theory by explaining how human capital accumulation and externalities drive long-run economic growth.
Observed surface forms (2)
| Surface form | Occurrences |
|---|---|
| endogenous growth theory | 1 |
| On the Mechanics of Economic Development | 0 |
Statements (49)
| Predicate | Object |
|---|---|
| instanceOf |
academic paper
ⓘ
economics paper ⓘ journal article ⓘ |
| assumption |
agents are forward-looking and optimize over time
ⓘ
individual human capital accumulation generates positive externalities ⓘ technology level depends on aggregate human capital ⓘ |
| author |
Robert E. Lucas Jr.
NERFINISHED
ⓘ
Robert Lucas Jr. NERFINISHED ⓘ |
| contribution |
challenged exogenous technological progress assumption of neoclassical growth models
ⓘ
emphasized role of human capital in growth ⓘ explained persistent income differences across countries via human capital externalities ⓘ helped found modern endogenous growth theory ⓘ introduced external effects of human capital into growth models ⓘ provided microfoundations for long-run growth ⓘ |
| field |
economic growth theory
ⓘ
economics ⓘ endogenous growth theory ⓘ macroeconomics ⓘ |
| influenced |
endogenous growth literature of the 1990s
ⓘ
macroeconomic models of human capital ⓘ policy debates on education and growth ⓘ |
| keyConcept |
human capital externalities
ⓘ
increasing returns at the aggregate level ⓘ non-rival knowledge ⓘ social returns to education ⓘ transition dynamics of growth ⓘ |
| keyResult |
aggregate externalities can generate increasing returns to scale in production
ⓘ
differences in human capital investment can explain large income gaps ⓘ long-run growth can be sustained by human capital accumulation alone ⓘ policy affecting education and learning can permanently affect growth rates ⓘ |
| language | English ⓘ |
| mainTopic |
cross-country income differences
ⓘ
development economics ⓘ economic growth ⓘ endogenous growth ⓘ externalities in growth ⓘ human capital accumulation ⓘ human capital externalities ⓘ long-run economic growth ⓘ technology spillovers ⓘ |
| notableFor |
being one of the founding papers of endogenous growth theory
ⓘ
formalizing the role of human capital externalities in growth ⓘ |
| publicationYear | 1988 ⓘ |
| relatedTo |
Solow–Swan growth model
NERFINISHED
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human capital theory ⓘ neoclassical growth theory ⓘ new growth theory ⓘ |
| theoreticalFramework |
dynamic general equilibrium model
ⓘ
human capital accumulation model ⓘ |
Referenced by (2)
Full triples — surface form annotated when it differs from this entity's canonical label.
this entity surface form:
endogenous growth theory