Ribeiro, Maria-João (2000) A nonscale growth model with R&D and human capital accumulation. Working Paper. University of Warwick, Department of Economics, Coventry.

Preview

PDF WRAP_Ribeiro_twerp574.pdf - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader Download (153Kb)

Abstract

This paper aims to contribute to the new growth theory with a model in which the engine of growth is human capital growth. Building on Romer's [1990] model, two new functions are introduced: (1) a specification for the production of new designs that assumes no externalities and no inventions before time zero; and (2) A specification for the accumulation of human capital technically similar to that in Lucas [1988]. As opposed to Romer's model, the scale-effects prediction is eliminated because technological growth does not depend on the number of researchers, but instead on the rate of growth of human capital. Moreover, the model introduced carries a new prediction: Growth depends positively on the ratio of final-good workers to researchers.

Item Type:	Working or Discussion Paper (Working Paper)
Subjects:	H Social Sciences > HF Commerce
Divisions:	Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH):	Research and development projects, Endogenous growth (Economics), Human capital, Scaling (Social sciences)
Series Name:	Warwick economic research papers
Publisher:	University of Warwick, Department of Economics
Place of Publication:	Coventry
Date:	November 2000
Number:	No.574
Number of Pages:	18
Status:	Not Peer Reviewed
Access rights to Published version:	Open Access
Funder:	Fundação para a Ciência e a Tecnologia (FCT), Universidade do Minho (UdM)
References:	Aghion, P. and Howitt, P. 1998. Endogenous Growth Theory. Cambridge, Mass: MIT Press. Aghion, P. and Howitt, P. 1992. ” A Model of Growth Through Creative Destruction.” Econometrica 60(2): 323-351. Cohen, D. 1998. The Wealth of the World and the Poverty of Nations. Cambridge, Mass: MIT Press. Dinopoulos, E. and Thompson, P. 1998. ”Schumpeterian Growth without Scale Effects. ” Journal of Economic Growth 3 (4): 313-335. Epstein, L. and Zin, S. 1989. ”Substitution, risk aversion and the temporal behaviour of consumption and asset returns.” Econometrica 57: 937-969. Grossman, G. and Helpman, E. 1991. Innovation and Growth in the Global Economy. Cambridge, Mass: MIT Press. Helpman, E. 1992. ”Endogenous Macroeconomic Growth Theory.” European Economic Review 36: 237-267. Jones, C. 1995. ”R&D-Based Models of Economic Growth.”Journal of Political Economy 103: 759-784. Jones, C. 1999. ”Growth: With or Without Scale E¤ects?” AEA Papers and Proceedings, Vol 89, No2:139-144. Kortum, S. 1997. ”Research, Patenting, and Technological Change.” Econometrica 65(6): 1389-1419. Lucas, R.E.Jr. 1988. ”On the Mechaniscs of Economic Development.” Journal of Monetary Economics, July 1988, 22:3-42. Mills, T. and Crafts, N. 1999. ”After the Golden Age: A Long Run Perspective on Growth Rates that Speeded Up, Slowed Down and Still Differ. ” The Manchester School, forthcoming. Peretto, P. 1986. ”Technological Change and Population Growth.” Journal of Economic Growth 3(4): 283-311. Rivera-Batiz, L. and Romer, P. 1991. ”Economic Integration and Endogenous Growth” Quarterly Journal of Economics, May 1991: 531-555. Romer, P. 1987. ”Growth Based on Increasing Returns Due to Specialization.” AEA Papers and Proceedings, Vol 77 No2: 56-62. Romer, P. 1990. ”Endogenous Technological Change.” Journal of Political Economy 98: S71-S102. Segerstrom, P. 1998. ”Endogenous Growth without Scale E¤ects.” American Economic Review 88(5): 1290-1310. Solow, R. M. 1956. ”A Contribution to the Theory of Economic Growth.” Quarterly Journal of Economics 70: 65-94. Solow, R.M.. 2000. Growth Theory: An Exposition. New York, Oxford: Oxford University Press. Temple, J. 1999. ”The New Growth Evidence. ” Journal of Economic Literature 37: 112-156. Uzawa, H. 1965. ”Optimum Technical Change in an Aggregative Model of Economic Growth. International Economic Revue 6: 18-31. Weil, P. 1990. ”Nonexpected utility in macroeconomics.” Quarterly Journal of Economics 105: 29-42. Young, A. 1998. ”Growth without Scale Effects.” Journal of Political Economy 106(1): 41-63.
URI:	http://wrap.warwick.ac.uk/id/eprint/1604

Request changes to a record

Actions (login required)

View Item