Quarterly Journal of Austrian Economics

A Capital-Based Theory of Secular Growth: Reply to Engelhardt

The Quarterly Journal of Austrian Economics

Volume 12, No. 2 (2009)


Engelhardt’s analysis implicitly assumes away the presence of diminishing returns. Diminishing returns have long been at the heart of growth theory — from Thomas Malthus’s ([1803] 2003) prediction of starvation as the result of population growth to Robert Solow’s (1956) conclusion that technological change is a necessary condition for secular growth. An account of secular growth in the presence of diminishing returns is featured prominently in both my critique of Roger Garrison’s (2001) theory of growth through capital accumulation and my alternative theory based on intangible, nonrivalrous capital.


Young, Andrew. "A Capital-Based Theory of Secular Growth: Reply to Engelhardt." The Quarterly Journal of Austrian Economics 12, No. 2 (2009): 63–67.

All Rights Reserved ©
What is the Mises Institute?

The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard. 

Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.

Become a Member
Mises Institute