Innovation and growth in the Grossman-Helpman’s model with increasing returns: a note
AbstractIn this paper I consider the 1991 Grossman-Helpman model which analyses the role of innovation on growth. The model assumes constant returns to scale. I intend to show what happen in this model if I assume strong increasing returns. In particular, under the assumption of increasing returns of capital but leaving all other main features of the Grossman-Helpman model unchanged, I analyse the influence of the rate of innovation on three variables: the rate of growth of final output, the level of prices of final output and the rate of investment.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 19612.
Date of creation: 27 Dec 2009
Date of revision:
Grossman-Helpman model; growth; innovation; increasing returns to scale;
Find related papers by JEL classification:
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-01-16 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Labini, Paolo Sylos, 1995. "Why the interpretation of the Cobb-Douglas production function must be radically changed," Structural Change and Economic Dynamics, Elsevier, vol. 6(4), pages 485-504, December.
- Luciano Boggio, 2003. "A Model of Take-Off and Fast Growth in Open Economies," Metroeconomica, Wiley Blackwell, vol. 54(2-3), pages 301-325, 05.
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