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dc.contributor.authorGreasley, David
dc.contributor.authorHanley, Nick
dc.contributor.authorMcLaughlin, Eoin
dc.contributor.authorOxley, Les
dc.description.abstractModern macroeconomic theory utilises optimal control techniques to model the maximisation of individual well-being using a lifetime utility function. Agents face choices over current and future consumption (with resultant implied savings decisions) seeking to maximise the present value of current plus future well-being. However, such inter-temporal welfare-maximising assumptions remain empirically untested. In the work presented here we test whether welfare was in (historical) fact maximised in the US between 1870-2000 and find empirical support for the optimising basis of growth theory, but only once a comprehensive view of what constitutes a country’s wealth or capital is taken into account.en
dc.publisherUniversity of Stirlingen
dc.relation.ispartofseriesSIRE DISCUSSION PAPER;SIRE-DP-2015-01
dc.subjectinter-temporal utility maximisationen
dc.subjectmodern growth theoryen
dc.subjectcomprehensive wealthen
dc.titleThe Emperor Has New Clothes: Empirical Tests of Mainstream Theories of Economic Growthen
dc.typeWorking Paperen

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