Long-term growth is only possible through continuous technological improvements that are "given" from outside the model. 2. Endogenous Growth Theory
Barro and Sala-i-Martin's "Economic Growth" provides a comprehensive framework bridging neoclassical models, such as Solow-Swan, with endogenous growth theories like the AK model. Their analysis emphasizes conditional convergence, where poorer economies grow faster, alongside empirical findings focusing on human capital and institutional stability to foster growth. Access the text and related materials, such as those at Piketty's Personal Files and EconStor , for detailed derivations. barro sala-i-martin economic growth solutions pdf