ABSTRACT
Economic growth was first addressed by the classical school of economy in the 18th century. In the years 1870–1945, studies were focused on effective allocation of limited resources, adopting a marginalist approach. Almost three decades after the Great Depression, discussions held among macroeconomists centred on the causes, effects and assessments of Keynesian responses to that series of events. D. Romer emphasized after almost 60 years that: The Solow model is the starting point for almost all analyses of growth. This chapter describes selected scientific inspirations that led to the development of the growth model in its versions proposed in 1956 and 1957. Roy Harrod’s equilibrium analysis was based on three assumptions. Evsey Domar’s analysis was based on five assumptions. The production function in Nicholas Kaldor’s model has the same characteristics as the production function in the Domar model.
