Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/300451 
Year of Publication: 
2024
Series/Report no.: 
Working Paper No. 1046
Publisher: 
Levy Economics Institute of Bard College, Annandale-on-Hudson, NY
Abstract: 
This paper offers a retrospective view of the key pillar of Solow's neoclassical growth model, namely the aggregate production function. We review how this tool came to life and how it has survived until today, despite three criticisms that undermined its raison d'ĂȘtre. They are the Cambridge Capital Theory Controversies, the Aggregation Problem, and the Accounting Identity. These criticisms were forgotten by the profession, not because they were wrong but because of the key role played by Robert Solow in the field. Today, these criticisms are not even mentioned when students are introduced to (neoclassical) growth theory, which is presented in most economics departments and macroeconomics textbooks as the only theory worth studying
Subjects: 
Accounting Identity
Aggregation Problem
Cambridge Capital Theory Controversies
Solow
JEL: 
B22
B31
B32
B41
E13
E25
Document Type: 
Working Paper

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