 From Solow to Romer: Teaching endogenous technological change in undergraduate economicsInternational Review of Economics Education, 2018, vol. 27, issue C, 10-15 Abstract: Undergraduate students learn economic growth theory through the seminal Solow model, which takes the growth rate of technology as given. To understand the origin of technological progress, we need a model of endogenous technological change. The Romer model fills this important gap in the literature. However, given its complexity, undergraduate students often find the Romer model difficult. This paper proposes a simple method of teaching the Romer model. We add three layers of structure (one at a time) to extend the familiar Solow model into the less familiar Romer model. First, we incorporate a competitive market structure into the Solow model. Then, we modify the competitive market structure into a monopolistic market structure. Finally, we introduce an R&D sector that invents new products. Keywords: Economic growth; Endogenous technological change; The Romer model (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:eee:ireced:v:27:y:2018:i:c:p:10-15 DOI: 10.1016/j.iree.2018.01.006 Access Statistics for this article International Review of Economics Education is currently edited by Guest, Ross More articles in International Review of Economics Education from Elsevier |
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