ENDOGENOUS RECOMBINANT GROWTH

Yacov Tsur and Amos Zemel

No 7135, Discussion Papers from Hebrew University of Jerusalem, Department of Agricultural Economics and Management

Abstract: We extend Weitzman's (1998) recombinant growth framework to include endogenous R&D decisions. The analysis is carried out in the (knowledge-capital) state space by means of two characteristic curves: one is identified as a turnpike along which growing economies evolve; the other attracts stagnating economies. Sustained growth depends on a condition relating the slopes of the characteristic curves as well as on a minimal endowment requirement. A growing economy reaches the turnpike at a most rapid R&D rate and evolves along it thereafter. In the long run, the rate of growth and the income shares devoted to R&D, saving and consumption approach constant values that depend on the asymptotic characteristic slopes.

Keywords: Research; Methods/Statistical; Methods (search for similar items in EconPapers)
Pages: 32
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/7135/files/dp060002.pdf (application/pdf)

Related works:
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:ags:huaedp:7135

DOI: 10.22004/ag.econ.7135

Access Statistics for this paper

More papers in Discussion Papers from Hebrew University of Jerusalem, Department of Agricultural Economics and Management Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().