Answer to Question #283737 in Macroeconomics for ABEX

Question

31. The AK models are the first generation models in an attempt to endogenize technology. Why are they still categorized as neoclassical growth models? Whose works mainly constitute the AK models?

Answer 1

The AK model is nonetheless classified as neoliberal since it was theoretically inadequate as a tool for studying long-term growth because it anticipated economies that would ultimately converge to a stable state, having zero per capita terms.