A dynamic general equilibrium model is developed in which goods are valued according to the characteristics they contain; the set of goods produced in any period is endogenously determined; and learning by doing is the force behind sustained growth. It is shown that the set of produced goods changes in a systematic way over time, with goods of higher quality entering each period and those of lower quality dropping out. The model is then used to study the effect of introducing a "traditional" sector in which there is no learning. Copyright 1988 by University of Chicago Press.
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Volume (Year): 96 (1988) Issue (Month): 4 (August) Pages: 701-17 Download reference. The following formats are available: HTML
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Handle: RePEc:ucp:jpolec:v:96:y:1988:i:4:p:701-17
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