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A New Asymptotically Non-Scale Endogenous Growth Model

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Author Info
Taiji Harashima (University of Tsukuba & Cabinet Office of Japan)

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Abstract

The paper explores an endogenous growth model in which scale effects asymptotically vanish and an economy grows without population growth. The key mechanism behind these features is substitution between investing in capital and in knowledge when firms face growing uncompensated knowledge spillovers. The model shows that firms invest more in capital than in knowledge and thus scale effects asymptotically evaporate as the number of population and thus uncompensated knowledge spillovers increase, and an economy grows without population growth.

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File URL: http://129.3.20.41/eps/dev/papers/0412/0412009.pdf
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Publisher Info
Paper provided by EconWPA in its series Development and Comp Systems with number 0412009.

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Length: 37 pages
Date of creation: 10 Dec 2004
Date of revision: 20 Dec 2004
Handle: RePEc:wpa:wuwpdc:0412009

Note: Type of Document - pdf; pages: 37
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Web page: http://129.3.20.41

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Related research
Keywords: Endogenous growth Scale effects Non scale model Uncompensated knowledge spillover

Find related papers by JEL classification:
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General

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  7. Dinopoulos, Elias & Thompson, Peter, 1998. " Schumpeterian Growth without Scale Effects," Journal of Economic Growth, Springer, vol. 3(4), pages 313-35, December. [Downloadable!] (restricted)
  8. Charles I. Jones, 1999. "Growth: With or Without Scale Effects?," American Economic Review, American Economic Association, vol. 89(2), pages 139-144, May. [Downloadable!] (restricted)
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  9. Jones, Charles I, 1995. "Time Series Tests of Endogenous Growth Models," The Quarterly Journal of Economics, MIT Press, vol. 110(2), pages 495-525, May. [Downloadable!] (restricted)
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    • Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-52, December. [Downloadable!] (restricted)
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  12. Robert E. Lucas, Jr., 1989. "On the Mechanics of Economic Development," NBER Reprints 1176, National Bureau of Economic Research, Inc.
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  13. Charles I. Jones, . "Population and Ideas: A Theory of Endogenous Growth," Working Papers 98014, Stanford University, Department of Economics. [Downloadable!]
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  14. Eicher, Theo S & Turnovsky, Stephen J, 1999. "Non-scale Models of Economic Growth," Economic Journal, Royal Economic Society, vol. 109(457), pages 394-415, July. [Downloadable!] (restricted)
  15. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October. [Downloadable!] (restricted)
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