Economic growth (process and micro-mechanisms)

Author: Yang Dequan
Publisher:
Publish Date: 2005-12-01
Features: Economic growth is the core and focus of modern economic theory research, and the fundamental purpose of growth theory research is to find models that can describe the real historical process of economic growth and reveal its micro mechanisms. Based on the above understanding, this book primarily conducts the following research:
1. Analyzed three main types of literature in existing economic growth research, discussed the strengths and weaknesses of each type of study, and pointed out two current trends in economic growth research.
2. Briefly reviewed the history of production function research and development, analyzed the impact of production factor heterogeneity on the additivity of production functions, the identity between aggregate production functions and accounting identities, and particularly highlighted the fatal impact of production factor heterogeneity on marginal analysis and its related conclusions. Finally, discussed the classification of production factors and the issue of capability utilization.
3. Analyzed the theoretical connections between Pareto efficiency, Pareto-Koopmans efficiency, TFP, and Allais surplus, provided a sufficient condition for zero Allais surplus, defined three types of surplus, and pointed out the relationship among factor capability utilization, the third type of surplus, and X-inefficiency.
4. Defined the use efficiency, fixed efficiency, and economic efficiency of production factors, provided an analysis method for changes in economic efficiency, and proved the equivalence between the use efficiency of production factors and the marginal outputs in the neoclassical framework.
5. By analyzing the micro approaches to eliminating efficiency bottlenecks (i.e., eliminating three types of surplus) and their relationship with economic agents, as well as the relationship between local equilibrium, multiple equilibria, and general equilibrium, revealed the micro mechanisms of the economic growth process. Defined the efficiency gradient and provided a distribution map of efficiency gradients. On this basis, analyzed the distribution and flow patterns of production factors, the reasons for club convergence, and comparative efficiency advantages.
6. Applied the efficiency competition model to analyze China's economic growth process since 1978, focusing on the sources of China's economic growth, the transformation process of efficiency bottlenecks, and the sustainability of growth. Provided a theoretical explanation for the gradual transformation model of China's economic transition.