Endogenous growth theory has made many valuable contributions, perhaps most notably in providing the tools that permit more effective empirical investigation of the growth process. Its one shortcoming, which is stressed here, is its inability to live up to its name, for where it has failed is in describing the wheels, the balance springs, and the interactions of the various other critical components of the mechanism that drives the growth process. This is no criticism because that is not the legitimate task of macroeconomics, one of whose prime virtues lies in judicious suppression of such complicating details in order to permit a better grasp of the overall workings of the economic machine. Such details are the task of the microeconomist, whose work must supplement the macro insights so that, together, we will obtain a fuller understanding of the growth process and how it may be improved.
Skip Nav Destination
December 1, 2009
Mauro Boianovsky Kevin D Hoover
Research Article| December 01 2009
Endogenous Growth: Valuable Advance, Substantive Misnomer
History of Political Economy (2009) 41 (Suppl_1): 304–314.
William J. Baumol; Endogenous Growth: Valuable Advance, Substantive Misnomer. History of Political Economy 1 December 2009; 41 (Suppl_1): 304–314. doi: https://doi.org/10.1215/00182702-2009-029
Download citation file:
Don't already have an account? Register
You could not be signed in. Please check your email address / username and password and try again.
Could not validate captcha. Please try again.
Sign in via your InstitutionSign In
2 Web of Science