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What's New and What's Old in New Growth Theory: Endogenous Technology, Microfoundation, and Growth Rate Predictions

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  • Schneider, Johannes
  • Ziesemer, Thomas

Abstract

This paper surveys new growth theory with emphasis on three open issues known from old endogenous growth theory of the sixties: i) What is the content of the black-box variable 'technology'? ii) Which market structure prevails when endogenous technology generates dynamically increasing returns to scale? iii) What are the justifications for and implications of different specifications of production functions for technical progress? We show that new growth theory has made progress on the first two problems but almost none with respect to the third.

Suggested Citation

  • Schneider, Johannes & Ziesemer, Thomas, 1994. "What's New and What's Old in New Growth Theory: Endogenous Technology, Microfoundation, and Growth Rate Predictions," MPRA Paper 56132, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:56132
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    2. Ziesemer, Thomas, 1996. "Dissent on convergence : the role of public factors, international trade and path dependence," Research Memorandum 004, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    3. Jojo Jacob & Christoph Meister, 2005. "Productivity gains, technology spillovers and trade: Indonesian manufacturing, 1980-96," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 41(1), pages 37-56.
    4. Flaschel, Peter, 2000. "Disequilibrium growth theory with insider-outsider effects," Structural Change and Economic Dynamics, Elsevier, vol. 11(3), pages 337-354, September.
    5. Hollanders, Hugo & Weel, Bas ter, 1998. "Skill-Biased Technological Change in an Endogenous Growth Model," Research Memorandum 016, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    6. Laure-Anne Parpaleix, 2016. "Innovation and growth potential: managing investment in middle market companies," Post-Print hal-01499024, HAL.
    7. Thomas Ziesemer, 2018. "Testing the Growth Links of Emerging Economies: Croatia in a Growing World Economy," Bulletin of Applied Economics, Risk Market Journals, vol. 5(1), pages 1-27.
    8. De Loo, Ivo & Soete, Luc, 1999. "The Impact of Technology on Economic Growth: Some New Ideas and Empirical Considerations," Research Memorandum 017, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    9. Bayraktar-Sağlam, Bahar & Yetkiner, Hakan, 2014. "A Romerian contribution to the empirics of economic growth," Journal of Policy Modeling, Elsevier, vol. 36(2), pages 257-272.
    10. Adriana Grigorescu & Elena Pelinescu & Amalia Elena Ion & Monica Florica Dutcas, 2021. "Human Capital in Digital Economy: An Empirical Analysis of Central and Eastern European Countries from the European Union," Sustainability, MDPI, vol. 13(4), pages 1-21, February.
    11. Hollanders, Hugo & Weel, Bas ter, 1999. "Skill-Biased Technical Change: On Endogenous Growth, Wage Inequality and Government Intervention," Research Memorandum 013, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    12. Rohini Acharya & Thomas Ziesemer, 1996. "A Closed Economy Model of Horizontal and Vertical Product Differentiation: The Case of Innovation in Biotechnology," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 4(3), pages 245-264.
    13. Alexia Prskawetz & Gunter Steinmann & Gustav Feichtinger, 1998. "A model on the escape from the Malthusian trap," Journal of Population Economics, Springer;European Society for Population Economics, vol. 11(4), pages 535-550.
    14. Juan Ricardo Perilla Jimenez, 2019. "Mainstream and evolutionary views of technology, economic growth and catching up," Journal of Evolutionary Economics, Springer, vol. 29(3), pages 823-852, July.

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    More about this item

    Keywords

    growth; technical progress; market structure; specifications;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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