Neoclassical Growth Model

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Definition: Neoclassical Growth Model


Neoclassical Growth Model


Full Definition of Neoclassical Growth Model


The Neo-Classical Growth Model demonstrates how economic growth can keep up with population growth. This model counters Malthus and his theory that economic growth is only linear while human growth is exponential.

Physical capital and human capital create investments which create growth. The growth from investments is so much that it will prevent any reversion to the subsistence levels as Malthus suggests. In the Neo-Classical Growth Model, population and output must grow at the same rate (delta).


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Definition Sources


Definitions for Neoclassical Growth Model are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 29th March, 2020 | 0 Views.