Robust endogenous growth

This paper shows that Schumpeterian models with endogenous market structure do not require knife-edge conditions to produce endogenous growth ó defined as steady-state, constant, exponential growth of income per capita. This version of modern growth theory, therefore, is robust: its key result obtains for a thick set of parameter values instead of, as often claimed, for a set of measure zero. The paper, moreover, pays close attention to transitional dynamics, showing not only the existence but also the global stability of the endogenous-growth steady state. Finally, the paper obtains the key results in an environment that allows for natural resource scarcity, thereby stressing the broader scope of the theory with respect to the applications that researchers have traditionally considered.