On the Long-Run Transformation Curve or Growth Theory Simplified
Journal of Political Economy
1975
This paper exploits a powerful analytical tool expounded by H. G. Johnson--the long-run transformation curve--in order to recast growth theory in the two-sector model in diagrammatic terms. Stability is investigated under an exhaustive list of savings assumptions. It offers the results of growth theory to nonmathematical economists who know the rudiments of linear programming geometry and also suggests interesting observations concerning, for instance, the need to subsidize investment for long-run utility maximization, the distinction between two types of instability occurring in the two-sector model, the likely gains of workers from the coexistence of capitalists in two-class models, etc.
- DOI
- 10.1086/260368
- Volume
- 83 (5)
- Pages
- 883-921
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref