Endogenous technological change: a note on stability
This paper demonstrates that the steady-state solution of the optimal-growth problem in Romer's (1990) model of endogenous technological change is globally saddle-point stable. Surprisingly, the proof of this result is trivial. Interest in the optimal growth path is justified by the fact that there is a (unique) combination of production and R&D subsidies by means of which the optimal growth path is attained as a market equilibrium.
Volume (Year): 16 (2000)
Issue (Month): 1 ()
|Note:||Received: October 6, 1998; revised version: April 19, 1999|
|Contact details of provider:|| Web page: http://saet.uiowa.edu/|
More information through EDIRC
|Order Information:||Web: http://www.springer.com/economics/economic+theory/journal/199/PS2|
When requesting a correction, please mention this item's handle: RePEc:spr:joecth:v:16:y:2000:i:1:p:219-226. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.