ABSTRACT
This chapter presents selected models of economic growth. The analysis focuses on neoclassical models of economic growth because the neoclassical growth theory confirms the existence of income-level conditional β convergence. The chapter includes the description of several versions of the Solow model: the basic version, the augmented version with human capital, and the Solow model with many types of capital. The Ramsey model is also presented in the neoclassical group. Both the Solow model and the Ramsey model are described in detail starting from the assumptions and finishing at the properties of the steady state and the behaviour of the economy during the transition period. In the group of endogenous models, the focus is made on the AK model, the Romer learning-by-doing model, and the Lucas model. The analysis shows the theoretical background for the β convergence regressions and indicates the differences between the neoclassical models as to the speed of convergence.
