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Comparative Statics And Dynamics Of The Romer R&D Growth Model With Quality Upgrading

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Author Info
Arnold, Lutz G.
Kornprobst, Wolfgang

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Abstract

This paper replaces increasing product variety with quality upgrading in the Romer model [Romer, Paul M., Journal of Political Economy 98 (1990), S71 perverse comparative-statics properties and either equilibrium indeterminacy or instability in the other subspace. These results for the closed economy can also be used to characterize the dynamics of the M-country open-economy version of the model.

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Publisher Info
Article provided by Cambridge University Press in its journal Macroeconomic Dynamics.

Volume (Year): 12 (2008)
Issue (Month): 05 (November)
Pages: 702-716
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Handle: RePEc:cup:macdyn:v:12:y:2008:i:05:p:702-716_07

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