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Facts and distortions in an endogenous growth model with physical capital, human capital and varieties

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  • Tiago Sequeira

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Abstract

This article studies a model with physical and human capital accumulation and varieties. The model includes several distortions: duplication effects, spillovers, creative destruction, surplus appropriability, and an erosion effect. We show that the duplication effect in R&D is essential to make the model replicate several stylized facts linked with R&D. We evaluate the distance to the optimal solution, comparing the strength of each distortion. Copyright Springer-Verlag 2012

Suggested Citation

  • Tiago Sequeira, 2012. "Facts and distortions in an endogenous growth model with physical capital, human capital and varieties," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 11(3), pages 171-188, December.
  • Handle: RePEc:spr:portec:v:11:y:2012:i:3:p:171-188
    DOI: 10.1007/s10258-012-0083-6
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    References listed on IDEAS

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    5. Gómez, Manuel A. & Sequeira, Tiago Neves, 2012. "A Note On R&D Spillovers In An Endogenous Growth Model With Physical Capital, Human Capital, And Varieties," Macroeconomic Dynamics, Cambridge University Press, vol. 16(04), pages 657-659, September.
    6. Galor, Oded, 2005. "From Stagnation to Growth: Unified Growth Theory," Handbook of Economic Growth,in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 4, pages 171-293 Elsevier.
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    More about this item

    Keywords

    Endogenous growth models; Convergence; Distortions; O11; O15; O31; O33; O41;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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