Economic Possibilities for the Grandchildern of John Maynard Keynes
AbstractThis paper explores the impact of insatiable needs on the sustainability and the direction of technological change and economic growth. In a simple framework it is shown that growth can only be sustained if either the opportunity costs of research are small at low levels of research or if some needs are insatiable. The first source of sustained growth (low opportunity cost of research) also enhances an efficient spread of growth over different technologies and commodities, while the second (insatiable needs) typically induces the `wrong kind' of growth. In connexion with Keynes' essay `On the Economic Possibilities of our Grandchildren' , we consider relative needs as the main source of insatiability of needs.
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Bibliographic InfoPaper provided by University of Bonn, Germany in its series Discussion Paper Serie A with number 512.
Length: 30 pages
Date of creation: Jul 1994
Date of revision:
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Postal: Bonn Graduate School of Economics, University of Bonn, Adenauerallee 24 - 26, 53113 Bonn, Germany
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Web page: http://www.bgse.uni-bonn.de/index.php?id=517
Endogenous growth; sources of sustained growth; direction of growth; relative needs.;
Find related papers by JEL classification:
- D60 - Microeconomics - - Welfare Economics - - - General
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
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