... Theory" marked the beginning of the modern theory of growth, had been followed up by Evsey Domar in his 1948 book, 'Towards a Dynamic Economics', as well as in a series of essays (1960, 1963, 1975) he developed this further, highlighting the instability problem of this model and launching the entire post-war research program on economic growth - and, reviving business cycle theory as well as dynamising Keynesian theory. The model has a place in developing economics where it did not remain a theoretical abstraction but served as the framework for plan formulation in countries such as India and Turkey. The main assumptions of the model are that firstly it is a one sector closed economy producing single undifferentiated product. Secondly, there is a simple production function with nothing else but capital and labor. Thirdly, it is characterized by fixed technical coefficient such as Capital/Labor and Labor/Capital ratios. Moreover, it is ...

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