This paper explains that the
neoclassical growth model, also known as the Solow-Swan model, was considered the basis of any research on economic growth; however, the neoclassical model treated technological progress as an
exogenous factor to the model, and this led to some puzzles that it could not answer. The author points out that the endogenous model that appeared in the 1980s stressed the importance of immaterial resources that had an impact on economic growth, resources such as human capital and R&D that improved technological progress and
increased economic growth; the subsequent models that followed were included in the New Growth Theory trend and endogenized economic growth. The paper examines three cases of
fiscal policy using
government spending as growth determinants: increased government expenditures without raising taxes, tax reduction without reducing government expenditure, and increased government expenditure with constant taxes. Economic notation used. Table of Contents The Solow-Swan Neoclassical Growth Model The New Growth Theory and Endogenous Models Fiscal Policy and Government Spending as Growth
determinants Literature Review
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