ABSTRACT
Fundamental progress in economics has to do with the restudy of basic ideas. It is through the reexamination as well as reinterpretation of basic ideas that we can fully appreciate the past and become aware of possibility of and hindrance to advancing. The Solow model is the starting point for almost all analyses of economic growth. It was the first neoclassical version of the Harrod-Domar growth model. It opened a new way to modeling economic growth. The previous chapter asserted that the only difference between the Solow model and the OSG model, so far, is description of consumer behavior. This chapter explains differences between the Solow model and the OSG model. We also examine differences in modeling consumer behavior between the other traditional approaches and the OSG model. Nevertheless, for illustrating the historical path of growth theory, it is proper for us to introduce the Harrod-Domar model - the most important formal (mathematical) growth model prior to the Solow growth model.1
