Unified growth theory was developed in light of the alleged failure of

endogenous growth theory Endogenous growth theory holds that economic growth is primarily the result of endogenous and not external forces. Endogenous growth theory holds that investment in human capital, innovation, and knowledge are significant contributors to economic ...

to capture key empirical regularities in the growth processes and their contribution to the momentous rise in

inequality Inequality may refer to: * Inequality (mathematics), a relation between two quantities when they are different. * Economic inequality, difference in economic well-being between population groups ** Income inequality, an unequal distribution of i ...

across nations in the past two centuries. Unified growth theory suggests that during most of human existence, technological progress was offset by population growth, and living standards were near subsistence across time and space. The

testable Testability is a primary aspect of science and the scientific method. There are two components to testability: #Falsifiability or defeasibility, which means that counterexamples to the hypothesis are logically possible. #The practical feasibilit ...

predictions of the theory and its underlying mechanisms have been confirmed in empirical and quantitative research in the past decade, and have inspired intensive exploration of the impact of historical and pre-historical forces on comparative economic development and the disparity in the wealth of nations. (d) the theory as a whole was explored quantitatively. Traits that were complementary to the technological environment generated higher level of income, and therefore higher reproductive success. Testable predictions of this evolutionary theory and its underlying mechanisms have been confirmed empirically and quantitatively.

References

{{reflist Macroeconomic theories

See also

References