A Nonscale Growth Model with R&D and Human Capital Accumulation

Maria Thompson

No 5/2003, NIPE Working Papers from NIPE - Universidade do Minho

Abstract: This paper presents an endogenous growth model that includes research and development and human capital accumulation. The model’s specification builds on the R&D-based structure of Romer’s [1990] model and introduces two functions: (1) A specification for the production of new designs that assumes no externalities and no inventions before time zero; and (2) A specification for the accumulation of human capital technically similar to that in Lucas [1988]. The model displays two main results. The first is that it eliminates the scale-effects prediction which is common to most R&D-based growth models, but which is not empirically supported. Secondly, the model offers a new prediction that growth depends positively on the ratio of final-good workers to researchers. Thus the model provides a theoretical explanation as to why developed countries have had rising numbers of researchers but not rising growth rates in the twentieth century.

Keywords: endogenous growth; research and development; human capital accumulation; scale-effects prediction; final-good workers to researchers ratio. (search for similar items in EconPapers)
JEL-codes: D5 O0 O3 O4 (search for similar items in EconPapers)
Date: 2003
New Economics Papers: this item is included in nep-dev and nep-dge
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Working Paper: A Nonscale Growth Model with R&D and Human Capital Accumulation (2000)
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