Abstract
The Solow-Swan model which was built under the influence of Harrod’s and Domar’s works on economic growth opened a new way to modeling economic growth (Solow, 1956, Swan, 1956, Burmeister and Dobell, 1970, Zhang, 1990). The standard neoclassical growth model initiated a new course of development of economic growth theory by using the neoclassical production function and neoclassical production theory, still maintaining the traditional way in handling with consumers behaviors in the dynamic analysis. This book is supposed to construct a comprehensive economic theory under the influence of the neoclassical growth theory, even though I will model consumers’ behavior in a way different from the Solow-Swan model. Using the utility function specified in Section 2.1, I am able to solve many important dynamic economic issues which are difficult to be analyze by the traditional economic theories in a consistent manner.
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