EconPapers    
Economics at your fingertips  
 

A Model of Growth through Creative Destruction

Philippe Aghion and Peter Howitt ()

Econometrica, 1992, vol. 60, issue 2, 323-51

Abstract: A model of endogenous growth is developed in which growth is driven by vertical innovations that involve creative destruction. Equilibrium is determined by a forward-looking difference equation, according to which the amount of research in any period depends negatively upon the amount expected next period. The paper analyzes positive and normative properties of stationary equilibria, and shows conditions for the existence of cyclical equilibria and no-growth traps. The growth rate may be more or less than optimal because a business-stealing effect counteracts the usual spillover and appropriability effects. In addition, innovations tend to be too small. Copyright 1992 by The Econometric Society.

Date: 1992
References: Add references at CitEc
Citations: View citations in EconPapers (2819) Track citations by RSS feed

Downloads: (external link)
http://links.jstor.org/sici?sici=0012-9682%2819920 ... 3B2-%23&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
Working Paper: A Model of Growth Through Creative Destruction (1992) Downloads
Working Paper: A MODEL OF GROWTH THROUGH CREATIVE DESTRUCTION (1990)
Working Paper: A Model of Growth Through Creative Destruction (1990) Downloads
Working Paper: A MODEL OF GROWTH THROUGH CREATIVE DESTRUCTION (1989)
Working Paper: A MODEL OF GROWTH THROUGH CREATIVE DESTRUCTION (1989)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecm:emetrp:v:60:y:1992:i:2:p:323-51

Ordering information: This journal article can be ordered from
https://www.economet ... ordering-back-issues

Access Statistics for this article

Econometrica is currently edited by Daron Acemoglu

More articles in Econometrica from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing ().

 
Page updated 2019-04-18
Handle: RePEc:ecm:emetrp:v:60:y:1992:i:2:p:323-51