1. How Sound Are The Foundations Of The Aggregate Production Function?
... agreement that reswitching and capital reversing were theoretically possible (Harcourt, 1972). This posed serious problems for the justification of the use of the neoclassical one-sector aggregate production function as a "parable". The revival of interest in growth theory with the development of endogenous growth theory is still squarely in the tradition of the neoclassical growth model. Pasinetti (1994) was compelled to ... can hardly be accused of not being fully aware of the aggregation problem. "I have never thought of the macroeconomic production function as a rigorously justifiab...
- Word Count: 11086
- Approx Pages: 44
- Has Bibliography
- Grade Level: Undergraduate