neoclassical growth theory someone, growth, return, target

AnalystForum

econ growth stops when real return=target return
could someone explain this thanks

prav_Cfa7

classical - YOU MAKE lot of kids as your income goes up (I hate this proposition, why are we still listening to this stupid ideas)

dmar

what is and who determines target rate of return?

dmar

NeoClassical Growth Theory is the proposition that real GDP per person grows because technological change induces a level of saving and investment that makes capital per hour of labor grow. Growth ends only if technological change stops. Key assumption is savings (increases the higher the real interest rate). Prosperity persists because there is no classical population growth to induce wage rate to fall.