Economy Country November 17, 2024

Economic Growth Insights by Robert Lucas

The narrative of modern economics highlights new knowledge growth models. Nobel laureate Robert Lucas emphasized demographic transformation as a solution for improving the conditions of the poor.


Economic Growth Insights by Robert Lucas

According to Abdellah-Hanafi, the phenomenon of sustainable revolution is not something associated with constant growth rates, but there was no singular or primary result of just technological changes. In modern economics, a new approach to growth is known, analogous to transitions between islands in a great journey. This approach included the cultivation of scientific knowledge for application in a certain field, the identification of its importance, the creation of a sector for incremental processing, and the completion of persuasive demonstration. Thus, as noted by Robert Lucas, Nobel laureate of 1995, interested in revealing policies capable of improving the situation of many poor people, solved by demographic transition.

In other words, Lucas began to identify economic policies that could help improve the quality of life of people living in poverty. He came to the conclusion that one of the key solutions to the problem is demographic transition.