What is orthodox policies?
Answers
Answer:
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Explanation:
Orthidox growth theories generaly assume a neoclassical production function, with growth of output explainedbuy increase in the capital stock or employment or by shifts in the function attributed to exogenous technical progress that is independent of investment but increase in the capital stock investment - either scrapping or depreciation and in competitive conditions neither of these will reduce output although causing big reductions in the stock. consequently the role of investment in explained growth has been very much understated leading to the famous residual attributed to exogenous technical progress . orthodox vintage cuties give essentially the same result and all are mistaken as there is no residual in reality technical progress cannot be separated from investment nor is it independent of it
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