TITLE:
Capital Structures: Vectorizing the Harrod-Domar Model in Macro-Economics
AUTHORS:
Frederick Betz
KEYWORDS:
Macro-Economics, Institutional Economics, Capital Flows, Financial Systems, Theory of the Firm
JOURNAL NAME:
Theoretical Economics Letters,
Vol.8 No.12,
September
17,
2018
ABSTRACT: The epistemological status of economic
theory is either as an idealistic pre-scription or a depiction of a factual
reality in context. We examine the reality of the macro-economic model of
Harrod-Domar in the context of the Japa-nese, Korean and American economic
history. Empirically, one sees that the model remained ideal but incomplete in
fact. The capital structures in an economy determined whether capital flowed
ideally or otherwise. This is a cross-disciplinary research approach combining
the economic perspective with the management perspective in the disciplines of
the social sciences.