Motivation Both the Solow model I and the neoclassical growth model predict per capita income grows at a constant rate. What policy can we use to avoid the fluctuations of economies away from the optimal allocations? Technological progress is either exogenously determined or grow at constant rates. 电子科大经管学院马捷 5Motivation  Both the Solow model and the neoclassical growth model predict per capita income grows at a constant rate.  What policy can we use to avoid the fluctuations of economies away from the optimal allocations?  Technological progress is either exogenously determined or grow at constant rates. 电子科大经管学院 马捷 5