The following points highlight the eight major criticisms of Harrod-Domar economic growth model. The criticisms are: 1. Unrealistic Assumptions 2. Aggregative Character of Models is Open to Criticism 3. Variables Expressed Only in Real Terms 4. Exaggeration of Instability and Others. Criticism # 1. Unrealistic Assumptions: The main objection to these models is that they are based upon rigid, abstract [...]
Let us make an in-depth study of the Harrod-Domar Economic Growth Model:- 1. Introduction to the Harrod-Domar Economic Growth Model 2. General Assumptions 3. Instability of Growth 4. The Domar Model 5. Summary of Main Points 6. Diagrammatic Representation. Introduction to the Harrod-Domar Economic Growth Model: Ever since the end of Second World War, interest in the problems of economic [...]
Let us make an in-depth study of the role of Harrod-Domar models in less developed countries. It is often argued that the Harrod-Domar model offers little help in solving the growth problems of under-developed countries. Though this argument has some weight, but it is not wholly justified. No doubt, this model has played a pioneer role in analysing the growth [...]