Contrast the classical, neoclassical and endogenous theories of growth

Classical growth theory, after Malthus, says income above subsistence triggers population growth that pushes income back down, so living standards cannot rise permanently. Neoclassical theory, after Solow, says diminishing returns to capital lead to a steady state in which output per worker grows only with exogenous technological progress; a higher saving rate raises the level of output, not its steady-state growth. In steady state, output per worker grows at TFP growth ÷ (1 − α), and total output at that rate plus labour force growth. Endogenous growth theory explains technology inside the model: knowledge spillovers offset diminishing returns, so more saving can raise growth permanently. Do not credit the neoclassical model with that result.