A critic perspective about growth models: exogenous and endogenous AK

Abstract

In the last thirty years, the economic growth has been analyzed under endogenous theory. The economic growth policy proposals are based on this classical postulates and conclusions. The main goal of this study is valuing above a critic perspective the basis of AK model (its name because A represents a constant and positive variation in capital K) and the exogenous prototype model in order to analyze growth models. According to this bibliographic revision, it is used a documental empiric method through a critic consultancy of classic models about endogenous growth They show that any economy can maintain positive growth rates per capita over longer periods of time. The main results evidence a possibility to employ short term economic policies to influence on growth rates in long term economy. Nevertheless, it implies several assumptions in order to reveal successful experiences around the world.