2023年3月5日 · The Harrod-Domar model is a classical economic growth model that explains the relationship between economic growth, capital accumulation, and savings. The model was developed by economists Roy Harrod and Evsey Domar in the 1930s and 1940s.

The first and the simplest model of growth—the Harrod-Domar Model—is the direct outcome of projection of the short-run Keynesian analysis into the long-run. This model is based on the capital factor as the crucial factor of economic growth. It concentrates on the possibility of steady growth through adjustment of supply of demand for capital.

The Harrod–Domar model is a Keynesian model of economic growth. It is used in development economics to explain an economy's growth rate in terms of the level of saving and of capital. It suggests that there is no natural reason for an economy to have balanced growth.

Domar presented his growth model in his pioneer work expansion and employment in 1947. Domar’s growth model addresses itself to the question as to what should be the rate of growth of investment so that the rate of growth of income coincides with the …

discuss the Harrod Model (HM) under the three growth scenarios considered; explain the Domar Model with an illustration indicating its policy implication; write a note on the similarities and dissimilarities between the Harrod and the Domar Models;

The Harrod-Domar growth model tells that the equilibrium growth rate is g = 25%/3 = 8.33%; i.e., the economy can grow at 8.33% per year. We can now check this result with actual aritmetic calculations.

The Harrod-Domar model provided the initial ‘impulse’ which gave birth to modern theories of economic growth. 1 Indeed, the Harrod model is the precursor of all types of growth models, including the neoclassical ones on which this course will focus, but