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A Model of Growth with Intertemporal Knowledge Externalities, Augmented with Contemporaneous Knowledge Externalities

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  • Mário A. P. M. Silva

    ()
    (Faculdade de Economia, Universidade do Porto)

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    Abstract

    The present model is essentially Romer’s (1990) model of endogenous growth with intertemporal knowledge externalities, augmented with contemporaneous knowledge externalities to give a richer explanation of the growth process. Both types of knowledge spillovers seem essential to capturing the features of knowledge in a model of growth. Introducing synchronic complementarities and knowledge externalities across inventive firms immediately creates the possibility of multiple equilibria and threshold effects in the present model. Another advantage of this theoretical formulation is that it allows for an analysis of the effects on steady-state growth of a variety of technology policies relying on changing knowledge complementarities parameters.

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    Bibliographic Info

    Paper provided by Universidade do Porto, Faculdade de Economia do Porto in its series FEP Working Papers with number 315.

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    Length: 23 pages
    Date of creation: Mar 2009
    Date of revision:
    Handle: RePEc:por:fepwps:315

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    Related research

    Keywords: Endogenous growth; innovation; knowledge complementarities; knowledge externalities; general equilibrium;

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