Endogenous Growth Models Unlock Pathways to Sustainable Prosperity for All
In this paper, economists explore five basic models that explain how economies grow. They start with a simple model called the AK model and show how other growth models are based on it. They also discuss how government spending can influence growth, how learning by doing and external factors play a role, and the importance of human capital like education for growth. Finally, they present a model that demonstrates how research and development can drive economic growth. These models help us understand how different aspects of an economy contribute to its long-term development.