Classical Economics on Limit to Growth

Neoclassical economics seems to have rejected the concept of limits to growth by assuming that the market and the technological advances invoked by it will make it possible to tap new resources and create substitution of production factors, while it has outright excluded limitations invoked by the political, psychological and social institutions in its analysis. Classical economics, other the other hand, appears to have been cognizant of a multitude of limitations to growth, including demographic, environmental, and social. This paper reconstructs classical economic growth models using system dynamics method and demonstrates their behavior using computer simulation. A case is made for taking a pluralistic view of the growth process and reincorporating a multitude of institutions driving it into our models to arrive at realistic policy options