ICT-Investment, Knowledge Accumulation and Endogenous Growth
AbstractIn this paper we present an endogenous growth model based on Lucas (1988). We have extended the Lucas model by incorporating ICT-capital next to human capital. We take account of spillovers from ICT use in human capital formation to final output production. The effects on growth of these spillovers depend very much on whether they are external or completely internalised. We find that welfare is positively affected, the stronger these spillovers are, but also the more these spillovers are internalised. In addition, we find that in the case of limited internalised knowledge spillovers, we may face a multiple equilibria steady state growth situation, that has an inherent tendency to select the non-optimum (high growth) equilibrium in which all types of capital are ‘over accumulated’, including ICT-capital. This suggests that there is room for policy intervention here, because there exists an ‘optimum’ value of the knowledge-spillover parameter where both equilibria coincide and over accumulation does not happen.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT) in its series Research Memorandum with number 037.
Date of creation: 2001
Date of revision:
economics of technology ;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Meijers, Huub, 2007. "ICT Externalities: Evidence from cross country data," MERIT Working Papers 021, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Charles Bollen).
If references are entirely missing, you can add them using this form.