Balanced-growth equilibrium
In macroeconomics, the balanced-growth path of a dynamic model is a trajectory such that all variables grow at a constant rate. In the standard exogenous growth model, balanced growth is a basic assumption, while other variables like the capital stock, real GDP, and output per worker are growing. Developing economies may adopt a strategy of unbalanced growth to rectify previous investment decisions, as put forward by economist Albert O. Hirschman.
In microbiology, the state of balanced-growth means "every extensive property of the growing system increases by the same factor over a time interval".[1] It is ideal for performing experiments because all bacteria are at about the same state (as opposed to stationary phase, for example, where some cells are alive and others are dead). Machines like chemostats can be used to culture bacteria and keep them in a state of balanced-growth for long-term experiments.
See also
References
- Delong, Brad. "Growth: An Introduction" (PDF). Lecture Notes.
- Kehoe, Tim. "Balanced Growth" (PDF). Lecture Notes.
- Gandolfo, Giancarlo (1996). "The neoclassical growth model". Economic Dynamics (Third ed.). Berlin: Springer. pp. 175–189. ISBN 3-540-60988-1.