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'Diversity Is, Uh ..., Homogeneity': The Case of Horizontal Innovation

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Author Info
MAN-SEOP PARK () (Department of Economics, Korea University)

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Abstract

The literature on 'horizontal innovation' claims to analyse the cases where unbounded endogenous growth comes from an increasing variety of intermediate goods. The present paper contends that a good sample of representative models in this literature share two essential assumptions regarding production technology and that these assumptions together amount to assuming the homogeneity of various intermediate goods. In these models, there is no variety of intermediate goods to increase due to the R&D activity; what increases is a mass of a single homogeneous intermediate good.

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File URL: http://econ.korea.ac.kr/~ri/WorkingPapers/w0505.pdf
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Publisher Info
Paper provided by Institute of Economic Research, Korea University in its series Discussion Paper Series with number 0505.

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Date of creation: 2005
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Handle: RePEc:iek:wpaper:0505

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Related research
Keywords: horizontal innovation; Dixit-Stiglitz technology;

Find related papers by JEL classification:
E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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This page was last updated on 2009-11-1.

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