Too Much of a Good Thing? The Quantitative Economics of R&D–driven Growth Revisited
Holger Strulik ()
No 05-26, Discussion Papers from University of Copenhagen. Department of Economics
This paper augments an R&D-based growth model of the third generation with human capital accumulation and impure altruism, calibrates it with U.S. data, and investigates whether the market provides too little or too much R&D. For benchmark parameters the market share of employment in R&D is close to the socially optimal allocation. Sensitivity analysis shows that the order of magnitude of possible deviation between market allocation and optimal R&D is also smaller than suggested by previous studies. Furthermore, the model allows for two additional channels through which population growth may affect the resource allocation so that its overall economic impact is no longer predetermined as being positive. Numerical calibrations show that economic growth at the U.S. average rate during the last century can be consistent with a small and probably negative partial correlation between population growth and economic growth.
Keywords: human capital; population growth; endogenous economic growth; R&D-spillovers (search for similar items in EconPapers)
JEL-codes: J24 O31 O40 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-hrm and nep-mic
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Journal Article: Too Much of a Good Thing? The Quantitative Economics of R&D‐driven Growth Revisited (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:kud:kuiedp:0526
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