Binomial R&d Races And Growth

John Hartwick

No 1022, Working Paper from Economics Department, Queen's University

Abstract: In each period, we have an R&D race among N competitive R&D firms, each withprobability π of discovering a successful new technique for producing an intermediategood used in producing the economy's final consumption good. The winner of a raceearns a monopoly profit over a generally uncertain interval. Each R&D firm facesdistinctive "lottery" and "duration" uncertainty in each period. Numerical examplesillustrate the growth behavior of the economy linked to the R&D sector.

Keywords: binomial R&D race; growth (search for similar items in EconPapers)
JEL-codes: O31 O41 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2004-09
New Economics Papers: this item is included in nep-ino and nep-mic
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Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:1022

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