Technological-Knowledge Dynamics in Lab-Equipment Models of Quality Ladders

Pedro Gil and Oscar Afonso

FEP Working Papers from Universidade do Porto, Faculdade de Economia do Porto

Abstract: The Perpetual Inventory Model (PIM) assumes that, in each period, an arbitrary constant fraction of technological-knowledge stock is lost. By connecting the aggregate resource constraint with firms’ market value, we give a theoretical background to the PIM by showing that the technological-knowledge accumulation follows a dynamic process with an endogenous depreciation rate, which remains stable in steady state. Moreover, we relate different concepts of technological-knowledge used in the literature.

Keywords: endogenous growth; endogenous depreciation rate; Perpetual Inventory Model; technological-knowledge dynamics (search for similar items in EconPapers)
JEL-codes: O30 O41 (search for similar items in EconPapers)
Pages: 12 pages.
Date: 2008-07
New Economics Papers: this item is included in nep-knm
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Persistent link: https://EconPapers.repec.org/RePEc:por:fepwps:283

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