Beyond the Steady State: A Revival of Growth Theory

In the past, the theory of economic growth has been fettered to the rock of equilibrium. In this book the authors break free and present institutional transformation as a central feature of growth. New arenas for theory emerge. These are developed in sections covering demand-constrained growth; the nature and role of technical change; the theory of the traverse (transition between equilibrium paths); and the modeling of cycles and catastrophes in a growing economy. Many of the contributions develop formal models, but place them within an explanatory framework making it possible to read the book as an introduction to the philosophy of post-neoclassical economics as well as a rigorous presentation of new findings.