Cycles + Semi-endogenous Growth = Endogenous Growth
AbstractOne-sector R&D-based models predict scale effects, which is empirically inconsistent. This is due to the "knife-edge" assumption that new ideas created are linear in the stock of knowledge. If this assumption is dropped to make a one-sector R&D-based model consistent with data, growth becomes semi-endogenous in the sense that public policy and consumer preferences do not affect growth in the long run, though technical progress is endogenous. This paper challenges this Consensus View. Using an otherwise very standard one-sector R&D-based model, we emonstrate the possibility of endogenous cycles where public policy and consumer preferences affect productivity growth. This result is obtained when the knife-edge assumption is violated.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. 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.
Bibliographic InfoPaper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2003 with number 139.
Date of creation: 04 Jun 2003
Date of revision:
Contact details of provider:
Postal: Office of the Secretary-General, School of Economics and Finance, University of St. Andrews, St. Andrews, Fife, KY16 9AL, UK
Phone: +44 1334 462479
Web page: http://www.res.org.uk/society/annualconf.asp
More information through EDIRC
Endogenous growth; semi-endogenous growth; R&D; technical progress;
Find related papers by JEL classification:
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).
If references are entirely missing, you can add them using this form.