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Technologies for endogenous growth

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  • Etro, Federico

Abstract

I microfound endogenous growth through neoclassical technologies with substitutable inputs created by monopolistically competitive innovators. Investment delivers innovations of declining profitability, but increasing labor force generates growth depending on structural technological parameters that determine the elasticities of profits and output with respect to the mass of inputs. For instance, with a Cobb–Douglas technology in labor and a CES aggregator of inputs, the growth rate declines with the substitutability between inputs and increases in the share of inputs in production. I also explore other classes of technologies and novel specifications that can deliver long run growth.

Suggested Citation

  • Etro, Federico, 2023. "Technologies for endogenous growth," Journal of Mathematical Economics, Elsevier, vol. 105(C).
    • Handle: RePEc:eee:mateco:v:105:y:2023:i:c:s0304406823000010
    DOI: 10.1016/j.jmateco.2023.102808
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    More about this item

    Keywords

    Long-run growth; Semi-endogenous growth; Population growth; Barro & Sala-i-Martin model;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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