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Reexamining the Interaction between Innovation and Capital Accumulation

  • Jinli Zeng

    ()

    (National University of Singapore)

In endogenous growth models with innovation and capital accumulation, Arnold (1998) and Blackburn, Hung and Pozzolo (2000) show that long-run growth of per capita income is independent of innovation activities; it is solely determined by preferences and the human capital accumulation technology. As a result, government policies do not affect long-run growth. This paper develops an endogenous growth model with innovation and (physical and human) capital accumulation to show that long-run growth depends on both innovation and capital accumulation technologies as well as on preferences and that government taxes and subsidies can have effects on the long-run growth rate.

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File URL: http://www.fas.nus.edu.sg/ecs/pub/wp/wp0203.pdf
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Paper provided by National University of Singapore, Department of Economics in its series Departmental Working Papers with number wp0203.

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Length: 32 pages
Date of creation: 2002
Date of revision:
Handle: RePEc:nus:nusewp:wp0203
Contact details of provider: Web page: http://www.fas.nus.edu.sg/ecs/index.html

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