Classical Economic Growth: An analysis in the tradition of Adam smith

This is the first book to treat classical economic growth, as derived from the work of Adam Smith, in a modern analytical fashion. The themes discussed are firmly rooted in the tradition of classical growth analysis; the methods and concerns are modern.

The necessary background in classical economics and growth theory is provided to make the book self contained. Then a modern approach is applied to the central themes of classical economic growth analysis: technical change, the division of labour, capital accumulation, thriftiness, the competitive process, increasing returns, sectoral disequilibrium, and the functional distribution of income.

The book develops a sequence of models, developing numerous new results. This sequence starts with growth and accumulation at the industry level, moves to fluctuations and growth at the aggregate level, and then the bargaining power of capital, and de-skilling, are analysed in an aggregate model. A sectoral disequilibrium analysis, which emphasizes the role of increasing returns and extends the work of Allyn Young and Nicholas Kaldor, is provided. The book concludes by relating classical growth analysis to the problems of a modern post-industrial economy.