Carlo Panico and Maria Olivella Rizza
Myrdal, growth processes and equilibrium theories

Abstract: The paper examines Myrdal’s presentation of a “cumulative causation approach” in opposition to the dominant one. It argues that the literature has overlooked that he criticised the logical consistency of neoclassical theory, stating that it is based on unsatisfactory assumptions regarding the characterisation of individual preferences, and that his contribution is still relevant to appraise some recent trends in the literature on growth, to appreciate why some views with poor foundations sometimes prevail in the society and in research activity, and to assess some limits of the dominant theoretical approach, which are again at the centre of scientific research.

JEL: 010, 020, 038.
Keywords: Myrdal, Development, Growth theories, Equilibrium theories, History of economic thought.



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