Long-run economic growth model

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Definition

The term long-run economic growth model is used for a model that describes how an economy grows in the long run. This growth may be measured via growth in measures such as gross domestic product, or via growth in total values of assets (land, capital, human capital). They may also be used to make long-run forecasts about the growth of specific economies, but this need not be their primary purpose.

Long-run economic growth models differ from each other in terms of the extent to which they account for, and the extent to which they endogenize, population growth, human capital improvements, accumulation of physical capital, and technological progress. They also differ in terms of the level and nature of their microfoundations.

Long-run economic growth models differ from short-run models that generally focus more on the role of fiscal and monetary policy, animal spirits, and regime uncertainty.