Quality Of Knowledge Technology, Returns To Production Technology, And Economic Development
AbstractWe incorporate a production technology that exhibits increasing returns to scale for small values of the capital stock and diminishing returns for the higher stocks at the firm level in a discrete-time version of Romer s endogenous growth model. We study the social planner s problem where the social production technology exhibits globally increasing returns to scale. The properties of the optimal paths are characterized. It is proved that for a given quality of knowledge technology, the countries can take off if their initial stock of capital is above a critical value. We analyze the effect of three factors on the critical value: initial knowledge, quality of knowledge technology, and level of fixed costs associated with production.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Cambridge University Press in its journal Macroeconomic Dynamics.
Volume (Year): 8 (2004)
Issue (Month): 02 (April)
Contact details of provider:
Postal: The Edinburgh Building, Shaftesbury Road, Cambridge CB2 2RU UK
Fax: +44 (0)1223 325150
Web page: http://journals.cambridge.org/jid_MDYProvider-Email:email@example.com
Other versions of this item:
- Cuong LE VAN & H. Cagri SAGLAM, 2001. "Quality of Knowledge Technology, Returns to Production Technology and Economic Development," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2002004, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tjalling C. Koopmans, 1963. "On the Concept of Optimal Economic Growth," Cowles Foundation Discussion Papers 163, Cowles Foundation for Research in Economics, Yale University.
- Le Van, C. & Morhaim, L. & Dimaria, C.-H., 2000.
"The Discrete Time Version of the Romer Model,"
Papiers d'Economie MathÃÂ©matique et Applications
2000.63, UniversitÃ© PanthÃ©on-Sorbonne (Paris 1).
- Romer, Paul M, 1986.
"Increasing Returns and Long-run Growth,"
Journal of Political Economy,
University of Chicago Press, vol. 94(5), pages 1002-37, October.
- Askenazy, P. & Le Van, C., 1997.
"A Model of Optimal Growth Strategy,"
DELTA Working Papers
97-27, DELTA (Ecole normale supérieure).
- Majumdar, Mukul & Mitra, Tapan, 1982. "Intertemporal allocation with a non-convex technology: The aggregative framework," Journal of Economic Theory, Elsevier, vol. 27(1), pages 101-136, June.
- Olivier Bruno & Cuong Le Van & Benoît Masquin, 2005.
"When does a developing country use new technologies ?,"
Cahiers de la Maison des Sciences Economiques
b05093, Université Panthéon-Sorbonne (Paris 1).
- Olivier Bruno & Cuong Van & Benoît Masquin, 2009. "When does a developing country use new technologies?," Economic Theory, Springer, vol. 40(2), pages 275-300, August.
- Olivier Bruno & Cuong Le Van & Beno�t Masquin, 2008. "When Does a Developing Country Use New Technologies?," Working Papers 12, Development and Policies Research Center (DEPOCEN), Vietnam.
- Olivier Bruno & Cuong Le Van & Benoît Masquin, 2009. "When Does a Developing Country Use New Technologies?," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) halshs-00101361, HAL.
- Olivier Bruno & Cuong Le Van & Benoît Masquin, 2005. "When does a developing country use new technologies ?," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) halshs-00197539, HAL.
- Nguyen, Ngoc Anh & Pham, Quang Ngoc & Nguyen, Dinh Chuc & Nguyen, Duc Nhat, 2007.
"Innovation and Export of Vietnam’s SME Sector,"
3256, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Keith Waters).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.