ABSTRACT
This chapter considers a very small and highly stylised aspect of the endogenous character of economic growth as envisaged by the classical authors. The chapter outlines the stylised 'classical' or rather Ricardesque theory of growth, and use Kaldor's well-known diagram to illustrate the endogeneity of the rate of growth. It deals both with the case in which the real wage is given and independent of the rate of growth of the workforce. The case in which a higher rate of growth requires a higher real wage rate, reflecting a kind of Malthusian population dynamics. The chapter explaines briefly with neoclassical models of growth whose natural starting point was a system in which the long-term rate of growth equals some exogenously given rate of growth of the factor(s) of production. Then, it argues that the endogenisation of the growth rate in a class of 'new' growth models is effected in a way that is reminiscent of classical economics.
