WikiDan61: Added cleanup-jargon tag.
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”’Unified growth theory”’ was developed to address the inability of the theory of endogenous [[economic growth]] to explain key empirical regularities in the growth processes of individual economies and the world economy as a whole. [[ Endogenous growth theory]] was preoccupied with trying to account for empirical regularities of the growth process of developed economies of the last hundred years. As a consequence it was not able to explain the qualitatively different empirical regularities that characterized the growth process over longer time horizons. Unified growth theories are endogenous growth theories that are consistent with the entire process of development, and in particular the transition from the epoch of Malthusian stagnation that had characterized most of the process of development to the contemporary era of sustained economic growth.
Unified growth theory was first advanced by [[Oded Galor]] and David Weil (2000) who were able to characterize in a single dynamical system; a stable Malthusian equilibrium which ultimately, due to the evolution of latent state variables, changes qualitatively so that the Malthusian equilibrium vanishes endogenously, causing a transitional growth take off before the system gradually converges to a modern growth steady-state equilibrium. The Malthusian state is characterized by slow technological progress and population growth and where the benefits of technological progress are offset by population growth. In the modern growth state technological progress does not encourage population growth but human capital accumulation which then further spurs technological progress
”’Unified growth theory”’ was developed to address the inability of the theory of endogenous [[economic growth]] to explain key empirical regularities in the growth processes of individual economies and the world economy as a whole. [[ Endogenous growth theory]] was preoccupied with trying to account for empirical regularities of the growth process of developed economies of the last hundred years. As a consequence it was not able to explain the qualitatively different empirical regularities that characterized the growth process over longer time horizons. Unified growth theories are endogenous growth theories that are consistent with the entire process of development, and in particular the transition from the epoch of Malthusian stagnation that had characterized most of the process of development to the contemporary era of sustained economic growth.
Unified growth theory was first advanced by [[Oded Galor]] and David Weil (2000) who were able to characterize in a single dynamical system; a stable Malthusian equilibrium which ultimately, due to the evolution of latent state variables, changes qualitatively so that the Malthusian equilibrium vanishes endogenously, causing a transitional growth take off before the system gradually converges to a modern growth steady-state equilibrium. The Malthusian state is characterized by slow technological progress and population growth and where the benefits of technological progress are offset by population growth. In the modern growth state technological progress does not encourage population growth but human capital accumulation which then further spurs technological progress
==Sources==
* [http://www.econ.brown.edu/fac/Oded_Galor/UGT.htm Brown University]]
* ‘The Transition from Stagnation to Growth: Unified Growth Theory’ in the Handbook of Economic Growth, North Holland, 2005.
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(Via Wikipedia – New pages [en].)