|Appears in Collections:||Economics Working Papers|
|Peer Review Status:||Refereed|
|Title:||The Emperor Has New Clothes: Empirical Tests of Mainstream Theories of Economic Growth|
|Citation:||Greasley D, Hanley N, McLaughlin E & Oxley L (2014) The Emperor Has New Clothes: Empirical Tests of Mainstream Theories of Economic Growth. Stirling Economics Discussion Paper, 2014-08.|
|Keywords:||inter-temporal utility maximisation|
modern growth theory
|Series/Report no.:||Stirling Economics Discussion Paper, 2014-08|
|Abstract:||Modern macroeconomic theory utilises optimal control techniques to model the maximisation of individual well-being using a lifetime utility function. Agents face choices over current and future consumption (with resultant implied savings decisions) seeking to maximise the present value of current plus future well-being. However, such inter-temporal welfare-maximising assumptions remain empirically untested. In the work presented here we test whether welfare was in (historical) fact maximised in the US between 1870-2000 and find empirical support for the optimising basis of growth theory, but only once a comprehensive view of what constitutes a country's wealth or capital is taken into account.|
|Type:||Working or Discussion Paper|
|Affiliation:||University of Edinburgh|
University of St Andrews
University of Waikato
|SEDP-2014-08-Greasley-Hanley-McLaughlin-Oxley.pdf||811.34 kB||Adobe PDF||View/Open|
This item is protected by original copyright
Items in the Repository are protected by copyright, with all rights reserved, unless otherwise indicated.
If you believe that any material held in STORRE infringes copyright, please contact firstname.lastname@example.org providing details and we will remove the Work from public display in STORRE and investigate your claim.