Technological-Knowledge Dynamics in Lab-Equipment Models of Quality Ladders
AbstractThe Perpetual Inventory Model (PIM) assumes that, in each period, an arbitrary constant fraction of technological-knowledge stock is lost. By connecting the aggregate resource constraint with firms’ market value, we give a theoretical background to the PIM by showing that the technological-knowledge accumulation follows a dynamic process with an endogenous depreciation rate, which remains stable in steady state. Moreover, we relate different concepts of technological-knowledge used in the literature.
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Bibliographic InfoPaper provided by Universidade do Porto, Faculdade de Economia do Porto in its series FEP Working Papers with number 283.
Length: 12 pages.
Date of creation: Jul 2008
Date of revision:
endogenous growth; endogenous depreciation rate; Perpetual Inventory Model; technological-knowledge dynamics;
Other versions of this item:
- Pedro Mazeda Gil & Oscar Afonso, 2011. "Technological-knowledge dynamics in lab-equipment models of quality ladders," Applied Economics Letters, Taylor & Francis Journals, vol. 18(4), pages 333-336.
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
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