In the Schumpeterian endogenous growth model, random innovations (technical progress) are the main element that explains economic growth. Empirical analyses suggest there are two variables that explain the introduction of innovations: a randomly variable and a deterministic trend. In this paper we add a deterministic variable to the basic Schumpeterian growth model. The introduction of a determinist variable improves the basic model. The new model reproduces several styled facts, which are shown in simulations.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. 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.
Length: 20 pages Date of creation: Jun 2003 Date of revision: Handle: RePEc:cdp:texdis:td202
Contact details of provider: Postal: Cedeplar-FACE-UFMG Av. Antonio Carlos, 6627 Belo Horizonte, MG 31270-901 Brazil Phone: 55-31-3409-7100 Fax: +55 31 3201-3657 Email: Web page: http://www.cedeplar.ufmg.br More information through EDIRC
Order Information: Postal: Cedeplar-FACE-UFMG Av. Antonio Carlos, 6627 Belo Horizonte, MG 31270-901 Brazil
For technical questions regarding this item, or to correct its listing, contact: (Hugo E. A. da Gama Cerqueira).
Find related papers by JEL classification: O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General