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- Title
DE NEOKLASSIEKE THEORIE EN DE TECHNISCHE VOORUITGANG.
- Authors
Pen, J.
- Abstract
This article contains a short survey of recent developments in neoclassical economic theory. Inspiration to write it is due to Murray Brown's interesting book On the Theory anti Measurement of Technological Change (1966). Neoclassical economic theory is presented as centering around the production function. The year 1956 is shown to have been an important year in this respect on account of the discovery of the Solow Function and the Abramowitz Residual. With regard to the theory of economic growth there are now two schools which may be called the school of Meade and the school of Solow. Brown endeavours to break down the Residual. His contribution in trying to distinguish ‘technological epochs’ is discussed at some length. The author welcomes Brown's book, but also points out some of its weaknesses. In his various chapters Brown shifts from Cobb-Douglas to Solow-functions and back again without explaining the reasons why. He also uses different ‘epochs’ for different aspects of his problem. The vagueness of his results is a sign of the experimental and therefore somewhat unsatisfactory stage of the new theory. The author suspects Brown to have fallen a victim to a common neoclassical error: that of overrating substitution effects and underrating keynesian effects. However, Brown's book is seen as an encouraging sign that macro-economics is vigorously working at new problems. Neoclassical economic theory is full of life.
- Subjects
ECONOMICS; PRODUCTION (Economic theory); ECONOMIC development; KEYNESIAN economics; MACROECONOMICS; DEVELOPMENT economics
- Publication
De Economist (0013-063X), 1967, Vol 115, Issue 1, p39
- ISSN
0013-063X
- Publication type
Article
- DOI
10.1007/BF02185174