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Final Goods Substitutability and Economic Growth

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Author Info
Koki Oikawa () (Nihon University, Population Research Institute)

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Abstract

In this paper, I investigate the effect of substitutability among final goods on welfare growth under the environment that productivity growth in each industry is not independent of one another. In such an environment, less substitutability is favorable to the welfare growth rate and the steady state welfare level, contrasting to Baumol (1967) and Lucas (1988).

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File URL: http://economicsbulletin.vanderbilt.edu/2007/volume15/EB-07O40007A.pdf
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Publisher Info
Article provided by Economics Bulletin in its journal Economics Bulletin.

Volume (Year): 15 (2007)
Issue (Month): 16 ()
Pages: 1-7
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Handle: RePEc:ebl:ecbull:v:15:y:2007:i:16:p:1-7

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Postal: Economics Bulletin, Department of Economics, 414 Calhoun Hall, Vanderbilt University, Nashville TN 37235, USA
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Related research
Keywords: Bayesian updating; Growth; Knowledge accumulation; Research market; Substitutability; Technical inefficiency;

Find related papers by JEL classification:
O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
O3 - Economic Development, Technological Change, and Growth - - Technological Change

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This page was last updated on 2009-12-12.

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