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N. Gregory Mankiw · David Romer · David N. Weil

This 1992 Quarterly Journal of Economics paper by Mankiw, Romer, and Weil tests whether Robert Solow's (1956) neoclassical growth model, augmented to include accumulation of human as well as physical …

Robert M. Solow

Robert Solow's 1956 paper argues that the Harrod-Domar model's famous conclusion -- that steady economic growth is only ever balanced on a "knife-edge," liable to tip into growing unemployment or …

F. P. Ramsey

Frank Ramsey's 1928 paper asks how much of its income a nation ought to save, and derives a rule -- that the rate of saving times the marginal utility of consumption should equal the gap between …

Trevor W. Swan

Trevor Swan's 1956 paper illustrates, with two diagrams, the connexion between capital accumulation and the growth of the productive labour force in a one-sector economy, then devotes a long appendix …

Paul M. Romer

This 1990 Journal of Political Economy paper by Paul Romer models long-run growth as driven by technological change that arises from intentional research investment by profit-maximizing firms, …

Nicolas Coeurdacier · Hélène Rey

A survey of why international investors hold a disproportionate share of domestic equities, bonds and bank assets ("home bias") despite the diversification gains foreign holdings would offer, …

Paul M. Romer

This 1986 Journal of Political Economy paper by Paul Romer builds a fully specified competitive-equilibrium model of long-run growth in which knowledge is an input to production with increasing …

Jeremy Greenwood · Zvi Hercowitz · Gregory W. Huffman

Keynes's idea that shocks to the marginal efficiency of investment drive fluctuations is placed inside a neoclassical model in which firms choose how hard to run their capital; a shock that raises the …

David Cass

David Cass's 1965 paper elaborates Frank Ramsey's 1928 optimum-saving problem inside Robert Solow's aggregative growth model, showing that maximizing the discounted stream of utility from per-capita …

Robert M. Solow

Robert Solow's 1957 paper proposes a simple method for separating shifts in the aggregate production function ("technical change," broadly defined) from movements along it caused by capital …

YiLi Chien · Yi Wen

This paper proves that the "interior" Ramsey steady state routinely assumed in heterogeneous-agent optimal-taxation models -- with a modified-golden-rule interest rate and a positive capital tax, as …

Anusha Chari · Jennifer Rhee

Measured firm by firm from accounting and stock-market data rather than imputed from national accounts, the marginal product of capital really is higher in poorer countries -- but inflation-adjusted …

Finn E. Kydland · Edward C. Prescott

This 1982 Econometrica paper by Finn Kydland and Edward Prescott builds an equilibrium growth model, fitted to post-war U.S. quarterly data, in which business-cycle fluctuations arise from technology …

Lawrence J. Christiano · Richard M. Todd

Investment projects begin with a long planning phase that consumes very little in the way of resources, and building that phase into an otherwise standard real business cycle model delays the response …