Traditional economic theories explain the level and growth of output by three main variables: employment, the capital stock, and technical progress. This book presents a major new theory of economic growth which explains changes in output over a given period and uses only employment growth and rate of investment as the main explanatory variables. The author also demonstrates how this theory can be used to explain why growth rates differ between different countries and periods, and why shares of wages and profits differ.
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Maurice FitzGerald Scott is at Nuffield College, Oxford.
"One of the most interesting and controversial books on economic growth to have appeared in recent years. It skillfully blends theoretical and applied analyses and is well written."--The Economic Journal
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