Solow's Harrod

Author(s): Verena Halsmayer
Abstract: Abstract: Modern growth theory derives mostly from Solow's “A Contribution to the Theory of Economic Growth” (1956). Solow's own interpretation locates its origins in his view that Harrod's growth model implied a tendency toward progressive collapse of the economy. He formulates his view in terms of Harrod's invoking a fixed-coefficients production function. We challenge Solow's reading of Harrod's “Essay in Dynamic Theory,” arguing that Harrod's object in providing a “dynamic” theory had little to do with the problem of long-run growth as Solow understood it, but instead addressed medium-run fluctuations, the “inherent instability” of economies. Solow's interpretation of Harrod was grounded in a particular culture of understanding embedded in the practice of formal modelling that emerged in economics in the post-Second World War period. Solow's interpretation, which ultimately dominated the profession's view of Harrod, is a case study in the difficulties in communicating across distinct interpretive communities and of the potential for losing content and insights in the process. Harrod's objects – particularly, of trying to account for a tendency of the economy toward chronic recessions – were lost to the mainstream literature.
Organisation(s): Department of History
External organisation(s): Duke University
Journal: European Journal of the History of Economic Thought
Volume: 23
Pages: 561-596
No. of pages: 36
ISSN: 0967-2567
DOI: https://doi.org/10.1080/09672567.2014.1001763
Publication date: 07-2016
Peer reviewed: Yes
Austrian Fields of Science 2012: 502047 Economic theory, 601022 Contemporary history
Keywords
ASJC Scopus subject areas: Arts and Humanities(all), Economics, Econometrics and Finance (miscellaneous), History and Philosophy of Science
Sustainable Development Goals: SDG 8 - Decent Work and Economic Growth
Portal url: https://ucrisportal.univie.ac.at/en/publications/solows-harrod(f37dae76-9203-44c8-a3da-8372c86c8775).html