Endogeneous technical change in a competitive economy (Q5956275): Difference between revisions
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Latest revision as of 22:01, 3 June 2024
scientific article; zbMATH DE number 1708984
| Language | Label | Description | Also known as |
|---|---|---|---|
| English | Endogeneous technical change in a competitive economy |
scientific article; zbMATH DE number 1708984 |
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Endogeneous technical change in a competitive economy (English)
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20 February 2002
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The authors develop a model of endogenous growth in an economy with competitive markets. Technical change arises from the international actions of entrepreneurs looking for profits. Opportunities for such profits stem from inframarginal rents. This provides a counterexample to the widespread view that endogenous technical change is possible only if innovating firms can expect to reap monopoly or oligopoly rents. The model has a unique equilibrium which involves steady growth at a positive rate. Equilibrium growth is inefficiently low because knowledge spillover effects are neglected. The inefficiency can be eliminated by an interest rate subsidy.
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endogenous growth
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endogenous technical change
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equilibrium
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