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TWO-SECTOR GROWTH, OPTIMAL GROWTH, AND THE TURNPIKE: AMALGAMATION AND METAMORPHOSIS

Published online by Cambridge University Press:  09 October 2013

Stephen Spear
Affiliation:
Carnegie Mellon University
Warren Young
Affiliation:
Bar Ilan University
Corresponding
E-mail address:

Abstract

This paper deals with the development of growth models from the optimal one-sector neoclassical approach of Cass–Malinvaud–Koopmans vintage, through two-sector, multisector, and turnpike models, and proceeds to discuss their displacement by the single-sector stochastic growth model. We also focus on the definitional shift regarding the turnpike. This is done by surveying both unpublished and published work by Uzawa, Cass, Koopmans, and McKenzie regarding growth and the turnpike, the cross-fertilization between them, and how this brought about the conflation of optimality and the turnpike, and the metamorphosis of the notion of the turnpike, from that of Dorfman–Samuelson Solow, to the Koopmans–McKenzie “amalgam” of models. Finally, the appearance of endogenous growth models, based on the work of Shell and Uzawa, is dealt with.

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Copyright © Cambridge University Press 2013 

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TWO-SECTOR GROWTH, OPTIMAL GROWTH, AND THE TURNPIKE: AMALGAMATION AND METAMORPHOSIS
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