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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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File URL: http://eprints.lse.ac.uk/3527/
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Bibliographic Info

Paper provided by London School of Economics and Political Science, LSE Library in its series LSE Research Online Documents on Economics with number 3527.

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Length: 39 pages
Date of creation: Dec 2006
Date of revision:
Handle: RePEc:ehl:lserod:3527

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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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