A New Asymptotically Non-Scale Endogenous Growth Model
AbstractThe 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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Bibliographic InfoPaper provided by EconWPA in its series Development and Comp Systems with number 0412009.
Length: 37 pages
Date of creation: 10 Dec 2004
Date of revision: 20 Dec 2004
Note: Type of Document - pdf; pages: 37
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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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-12-20 (All new papers)
- NEP-DEV-2004-12-20 (Development)
- NEP-MAC-2004-12-20 (Macroeconomics)
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