Show Summary Details

Page of

PRINTED FROM OXFORD HANDBOOKS ONLINE ( © Oxford University Press, 2018. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a title in Oxford Handbooks Online for personal use (for details see Privacy Policy and Legal Notice).

date: 05 April 2020

Abstract and Keywords

The role of capital accumulation in the process of long-run income growth has been the subject of great debate. The classical and early neoclassical economists viewed capital accumulation as the fundamental driver of growth. Economists informed by the Solow growth model (and its successors) and by twentieth-century growth accounting exercises assign capital accumulation a much more marginal role. This now standard view takes certain constancies for granted: the rate of capital formation (i.e., the saving rate), the capital-output ratio, capital’s share of income, and the rate of return on capital (i.e., the interest rate). This chapter documents the historical evolution of capital in the American economy and challenges the conventional thinking. It shows that the role of capital accumulation in economic growth is dynamic and has changed dramatically over the past three centuries.

Keywords: capital, economy, Solow, growth theory, growth accounting, income shares

Access to the complete content on Oxford Handbooks Online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.

Please subscribe or login to access full text content.

If you have purchased a print title that contains an access token, please see the token for information about how to register your code.

For questions on access or troubleshooting, please check our FAQs, and if you can''t find the answer there, please contact us.