Endogenous Technological Change

  title={Endogenous Technological Change},
  author={Paul Romer},
  journal={Journal of Political Economy},
  pages={S71 - S102}
  • P. Romer
  • Published 1 December 1989
  • Economics
  • Journal of Political Economy
Growth in this model is driven by technological change that arises from intentional investment decisions made by profit-maximizing agents. The distinguishing feature of the technology as an input is that it is neither a conventional good nor a public good; it is a nonrival, partially excludable good. Because of the nonconvexity introduced by a nonrival good, price-taking competition cannot be supported. Instead, the equilibrium is one with monopolistic competition. The main conclusions are that… 
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