A New Asymptotically Non-Scale Endogenous Growth Model

Taiji Harashima

Development and Comp Systems from EconWPA

Abstract: The paper explores an endogenous growth model in which scale effects asymptotically vanish and an economy grows without population growth. The key mechanism behind these features is substitution between investing in capital and in knowledge when firms face growing uncompensated knowledge spillovers. The model shows that firms invest more in capital than in knowledge and thus scale effects asymptotically evaporate as the number of population and thus uncompensated knowledge spillovers increase, and an economy grows without population growth.

Keywords: Endogenous growth; Scale effects; Non scale model; Uncompensated knowledge spillover (search for similar items in EconPapers)
JEL-codes: O40 E10 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev and nep-mac
Date: 2004-12-10, Revised 2005-03-01
Note: Type of Document - pdf; pages: 37
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpdc:0412009

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