Non-scale endogenous growth with R&D and human capital

Creina Day

CAMA Working Papers from Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University

Abstract: This paper examines the conditions under which increasing knowledge, encapsulated in ideas for new technology through R&D and embodied in human capital through education, sustains economic growth. We develop a general model where, consistent with recent literature, growth is non-scale (not increasing in population size) and endogenous (generated by factors within R&D and education). Recent models feature the counterfactual assumption of constant returns to existing knowledge and restrict the substitutability of inputs within R&D and education. We find that non-scale endogenous growth is possible under less stringent conditions. Our findings reconcile sustained economic growth with evidence of diminishing marginal returns in education and R&D, which suggests an ambiguous role for R&D policy.

Pages: 40 pages
Date: 2016-10
New Economics Papers: this item is included in nep-cse, nep-gro and nep-ino
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Non-Scale Endogenous Growth with R&D and Human Capital (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:een:camaaa:2016-62

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