On Stability in the Sense of Harrod

At the outset it should be noted that there is no universal agreement on the definition of for systems involving growth. There are at least two different notions of in Harrod's presentation. (1) Instability means departure from the line of warranted advance, i.e., from a particular time-path of output;3 (2) Instability means that the actual rate of growth departs from the warranted rate; the latter is the definition implied in the passage quoted above. This second definition has been called instability in the sense of by Alexander.4 The same definition underlies Baumol's discussion of the instability of the Harrod model.5 In the theory of growth stability is used in yet a third sense: of balanced growth, or of the proportion between the components of the growth model. An example of balanced growth in the Harrod model is the warranted growth situation where capital and output remain in fixed proportions even though both are growing. This type of may be called relative , because the components of the growth model remain constant relative to each

Economics · Sense (electronics) · Chemistry · Economic Theory and Policy

• On Instability in the Sense of Harrod

  José Antonio Miranda Encarnación, J Encarnacion•Economica•1965

  Add to list

• The condition of self-steering of economic development

  Open Access•Arvid Aulin•Mathematical Social Sciences•1989

  Add to list