 Capital and Knowledge: Integrating Arrow’s Learning-by-Doing, the Walrasian Equilibrium Theory and Neoclassical Growth TheorySouth Asian Journal of Macroeconomics and Public Finance, 2014, vol. 3, issue 2, 267-293 Abstract: This article proposes a neoclassical growth model with endogenous capital accumulation and knowledge creation. The model integrates Arrow’s learning by doing, Uzawa’s two-sector growth model and Walrasian general equilibrium theory. We use a utility function, which determines leisure time, saving and consumption with utility optimization without leading to a higher dimensional dynamic system like the Ramsey approach. The dynamics of J -household economy is described by a (  J + 1)-dimensional differential equations system. We simulate the motion of the model and demonstrate transitional and long-term effects of changes in the propensity to save, the propensity to use leisure time, the population, the learning-by-doing efficiency and knowledge utilization efficiency. The comparative dynamic analysis provides some insights into issues related to inequality and growth. JEL Classification: D51, D31, O41, E13 Keywords: Walrasian general equilibrium theory; neoclassical growth theory; learning by doing; elastic labour supply; knowledge creation; capital accumulation (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sae:smppub:v:3:y:2014:i:2:p:267-293 Access Statistics for this article More articles in South Asian Journal of Macroeconomics and Public Finance |
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