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.
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Bibliographic InfoArticle provided by Cambridge University Press in its journal Macroeconomic Dynamics.
Volume (Year): 8 (2004)
Issue (Month): 02 (April)
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Other versions of this item:
- LE VAN, Cuong & SAGLAM, H. Cagri, . "Quality of knowledge technology, returns to production technology, and economic development," CORE Discussion Papers RP -1747, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- 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.:
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