The Self-Defeating Endogenous Growth Theory
6 Pages Posted: 14 Jul 2014 Last revised: 15 Mar 2016
Date Written: July 12, 2014
Abstract
This paper proves that the endogenous attempt to derive unlimited growth leads to bankrupting business. Endogenous growth requires increasing returns to scale, but its mathematical solution does not exist. Using Euler’s theorem, this paper confirms that such theory ruins both the production operation and the theory itself. The graphic presentation even confirms that endogenous growth means bankruptcy.
Keywords: Growth, Scale
JEL Classification: O41
Suggested Citation: Suggested Citation
Choi, Hak, The Self-Defeating Endogenous Growth Theory (July 12, 2014). Available at SSRN: https://ssrn.com/abstract=2465527 or http://dx.doi.org/10.2139/ssrn.2465527
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