A CRITIQUE OF MAINSTREAM
GROWTH THEORY: WAYS OUT
OF THE NEOCLASSICAL SCIENCE
(-FICTION) AND TOWARD
MARXISM
Re´my Herrera
ABSTRACT
This chapter is a radical critique of the neoclassical growth theory,
justifying ways out of mainstream economics. It has three parts. The first
one analyzes growth theories from the Classical representation to the
endogenous growth models. The second part demonstrates that the ‘‘new
growth theory’’ is not a break with Solow’s formalization. To prove it, we
build an original Solowian endogenous growth model. Then, this
neoclassical macrodynamic framework is technically, deeply critized in
a third part. We show that both exogenous and endogenous neoclassical
models prove to be incapable to explain growth in the long period. We
concentrate on the ambiguities surrounding the hypothesis of single agent,
as well as on the role of the state, in particular when it is considered as a
‘‘planner’’ by the neoclassicals. Endogenous growth models do not
correspond to macrodynamization of the Walrasian general equilibrium,
nor have solid microeconomic bases. We advocate in favor of