Endogenous Technological Change

@article{Romer1990EndogenousTC,
  title={Endogenous Technological Change},
  author={Paul Romer},
  journal={Journal of Political Economy},
  year={1990},
  volume={98},
  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… 
Dynamic Analysis of an Endogenous Growth Model with Investment�?Specific Technological Change
type="main"> This paper examines a dynamically optimal subsidy policy in a continuous-time version of the endogenous growth model developed by Krusell (Krusell, P. (1998) “Investment-Specific R&D and
Equilibrium Imitation and Growth
The least productive agents in an economy can be vital in generating growth by spurring technology diffusion. We develop an analytically tractable model in which growth is created as a positive
Internal Increasing Returns to Scale and Economic Growth
This study develops a model of endogenous growth based on increasing returns due to firms' technology choices. Particular attention is paid to the implications of these choices, combined with the
Towards a theory of technological mismatch. 2 - Economic growth
In this paper, the relationship between technological change and the labour market is analysed using a growth model. Economic growth is generated by private investment in human capital, which is the
Exhaustible Resources, Monopolistic Competition, and Endogenous Growth
One of the central analytical findings of the growth literature is that continuous growth is possible even in an economy with exhaustible resources. Based on this result, this paper addresses the
Uncertain Technological Change under Capital Mobility
The analysis in this paper shows that unpredictable variations in economic productivity may have a positive or negative effect on the average growth rate of output. This theoretical ambiguity result
Growth, competition and welfare
The impact of competition on growth and welfare is analyzed by developing a model in which the number of firms, profit margins, and innovation rates are endogenous. Different regimes of oligopolistic
...
...

References

SHOWING 1-10 OF 99 REFERENCES
Increasing Returns and Long-Run Growth
  • P. Romer
  • Economics
    Journal of Political Economy
  • 1986
This paper presents a fully specified model of long-run growth in which knowledge is assumed to be an input in production that has increasing marginal productivity. It is essentially a competitive
Comparative Advantage and Long-Run Growth
We construct a dynamic, two-country model of trade and growth in which endogenous technological progress results from the profit-maximizing behavior of entrepreneurs. We study the role that the
Growth and Welfare in a Small Open Economy
We construct a model of growth based on endogenous technological change in a small, open economy. Entrepreneurs develop new intermediate products whenever the present value of potential profits
Monopolistic competition and optimum product diversity
Pettengill tests whether there is an excessive number of firms in a monopolistically competitive equilibrium by a device of considerable expository merit. He removes one firm, and redistributes the
Long-Run Policy Analysis and Long-Run Growth
The wide cross-country disparity in rates of economic growth is the most puzzling feature of the development process. This paper describes a class of models in which this heterogeneity in growth
The Economic Implications of Learning by Doing
It is by now incontrovertible that increases in per capita income cannot be explained simply by increases in the capital-labor ratio. Though doubtless no economist would ever have denied the role of
Learning-by-doing, Market Structure and Industrial and Trade Policies
In this article the authors explore, in a preliminary way, some of the effects of learning-by-doing on the structure, conduct and performance of an industry. Learning is seen as a decline in a firm's
Product Development and International Trade
We develop a multicountry, dynamic general equilibrium model of product innovation and international trade to study the creation of comparative advantage through research and development and the
Market Structure and Foreign Trade: Increasing Returns, Imperfect Competition, and the International Economy.
Market Structure and Foreign Trade presents a coherent theory of trade in the presence of market structures other than perfect competition. The theory it develops explains trade patterns, especially
Growth and Welfare in a Small, Open Economy
The literature on trade and growth provides several examples in which factor augmentation or technical progress can reduce the welfare of an open economy. The most famous example of such
...
...