ABSTRACT
This chapter examines the last group of growth models, which represent – together with those of the ‘new economic geography’ – the most recent of such models. They closely resemble the ones presented in the previous chapter in that they have a high level of formalization and a strictly dynamic structure. As the chapter proceeds, we shall again be dealing with models that investigate the endogenous determinants of an aggregate growth rate, as opposed to the individual microeconomic and micro-territorial elements of competitive or locational advantage typical of development theories. Once again these will be models with a high degree of mathematical formalization, which conceive increasing returns as economies of scale or learning, and which stylize them in equations explaining the growth rate of per capita output.
