Turnpike Theory

Discipline: Economics

Named by the American economists ROBERT DORFMAN (1916-2002), Paul Samuelson (1915- ) and Robert Solow (1924- ); turnpike theory asserts that it is sometimes better to adopt a maximum or near maximum possibility balanced growth-path to allow an economy to move to a more satisfactory state quickly, even if consumption is lower in the interim than at the beginning or end.

An optimal growth theory, turnpike theory was named after the American term for motorway.

Also see: Harrod-Domar growth model, Solow economic growth

Source:
R Dorfman, P A Samuelson, and R Solow, Linear Programming and Economic Analysis (New York, 1958)

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