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An R&D-Based Model of Multi-Sector Growth

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  • L. Rachel Ngai
  • Roberto M. Samaniego

Abstract

We develop a multi-sector general equilibrium model in which productivity growth is driven by the production of sector-specific knowledge. In the model, we find that long run differences in total factor productivity growth across sectors are independent of the parameters of the knowledge production function except for one, which we term the fertility of knowledge. Differences in R&D intensity are also independent of most other parameters. The fertility of knowledge in the capital sector is central to the growth properties of the model economy.

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Bibliographic Info

Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0762.

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Date of creation: Dec 2006
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Handle: RePEc:cep:cepdps:dp0762

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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

Related research

Keywords: Endogenous technical change; multisector growth; fertility of knowledge; total factor productivity; R&D intensity; investment-specific technical change;

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References

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Citations

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Cited by:
  1. Gianluca Benigno & Christoph Theonissen, 2006. "Consumption and real exchange rates with incomplete markets and non-traded goods," LSE Research Online Documents on Economics 3758, London School of Economics and Political Science, LSE Library.
  2. Henry G. Overman & Diego Puga & Matthew A. Turner, 2007. "Decomposing the growth in residential land in the United States," Working Papers tecipa-278, University of Toronto, Department of Economics.
  3. Willem H. Buiter, 2007. "Seigniorage," NBER Working Papers 12919, National Bureau of Economic Research, Inc.
  4. Giorgio Gobbi & Roberta Zizza, 2007. "Does the Underground Economy Hold Back Financial Deepening? Evidence from the Italian Credit Market," CEP Discussion Papers dp0789, Centre for Economic Performance, LSE.
  5. Alan Manning, 2007. "The Plant Size-Place Effect: Agglomeration and Monopsony in Labour Markets," CEP Discussion Papers dp0773, Centre for Economic Performance, LSE.

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