Abstract:A MODEL OF GROWTH THROUGH CREATIVE DESTRUCTION A5STR.ACTThis paper develops a model based on Schumpeter's process of creative destruction. It departs from existing models of endogeneous growth in emphasizing obsolescence of old technologies induced by the accumulation of knowledge and the resulting process or industrial innovations. This has both positive and normative implications for growth. In positive terms, the prospect of a high level of research in the future can deter research today by threatening the … Show more
“…The latter possibility is excluded, as the state-costate system, which is in one-to-one relation with the state-control system, has constant positive divergence everywhere (see Wagener, 2003). There are no steady states in R (1) 2 . Hence there is a sequence t 0 , t 1 , .…”
Section: A22 Trajectories In R 2 Cannot Be Optimalmentioning
confidence: 99%
“…Note that the trajectory through (ĉ,û (1) ) goes to the left, and that through (ĉ,û (2) ) goes to the right. As Π ĉ,û (1) = Π ĉ,û (2) , it follows that |û (1) − 1| = |û (2) − 1|.…”
Section: A52 Proof Of Propositionmentioning
confidence: 99%
“…Grossman and Helpman (1991), Aghion and Howitt, 1992) the case for prohibiting collusion per se is further weakened. On the other hand, colluding firms tend to hold on longer to technologies that are destined to leave the market.…”
We present a continuous-time generalization of the seminal R&D model of d'Aspremont and Jacquemin (American Economic Review, Vol. 78,No. 5) to examine the trade-off between the benefits of allowing firms to cooperate in R&D and the corresponding increased potential for product market collusion. We consider all trajectories that are candidates for an optimal solution as well as initial marginal cost levels that exceed the choke price. Firms that collude develop further a wider range of initial technologies, pursue innovations more quickly, and are less likely to abandon a technology. Product market collusion could thus yield higher total surplus.
“…The latter possibility is excluded, as the state-costate system, which is in one-to-one relation with the state-control system, has constant positive divergence everywhere (see Wagener, 2003). There are no steady states in R (1) 2 . Hence there is a sequence t 0 , t 1 , .…”
Section: A22 Trajectories In R 2 Cannot Be Optimalmentioning
confidence: 99%
“…Note that the trajectory through (ĉ,û (1) ) goes to the left, and that through (ĉ,û (2) ) goes to the right. As Π ĉ,û (1) = Π ĉ,û (2) , it follows that |û (1) − 1| = |û (2) − 1|.…”
Section: A52 Proof Of Propositionmentioning
confidence: 99%
“…Grossman and Helpman (1991), Aghion and Howitt, 1992) the case for prohibiting collusion per se is further weakened. On the other hand, colluding firms tend to hold on longer to technologies that are destined to leave the market.…”
We present a continuous-time generalization of the seminal R&D model of d'Aspremont and Jacquemin (American Economic Review, Vol. 78,No. 5) to examine the trade-off between the benefits of allowing firms to cooperate in R&D and the corresponding increased potential for product market collusion. We consider all trajectories that are candidates for an optimal solution as well as initial marginal cost levels that exceed the choke price. Firms that collude develop further a wider range of initial technologies, pursue innovations more quickly, and are less likely to abandon a technology. Product market collusion could thus yield higher total surplus.
“…Un modèle adéquat du cycle économique doit probablement imbriquer un modèle de la croissance économique. En fait, il y a eu récemment une véritable renaissance de l'intérêt pour la modélisation de la croissance, avec une nouvelle génération de modèles qui l'endogénéisent (voir par exemple Aghion et Howitt, 1989 ;King et Rebelo, 1988 ;et Romer, 1986et Romer, , 1988.…”
Section: Comment « Extraire La Tendance » Des Séries Macroéconomiques ?unclassified
Le but de ce texte est de présenter une introduction non technique à l’utilisation et à l’importance de séries chronologiques non stationnaires en économétrie et en macroéconomique. Les sujets suivants font l’objet de la présentation : la distinction entre tendances stochastiques et tendances déterministes; les tests d’hypothèse pour discriminer entre séries non stationnaires avec tendances stochastiques, d’une part, et, d’autre part, séries qui sont stationnaires autour de tendances déterministes; les conséquences de la non-stationnarité pour la théorie macroéconomique; les tests de stationnarité en présence de changements structurels; l’estimation de modèles économétriques avec variables qui sont individuellement non stationnaires.The paper gives a non-technical introduction to non-stationary time series and considers their importance in macro-econometrics and macroeconomics. The following topics are discussed: the distinction between stochastic and deterministic trends; statistical tests for discriminating between non-stationary series with stochastic trends and series which are stationary or which are stationnary around a deterministic time trend; the importance of unit roots for macroeconomic theory; structural breaks and tests for stochastic trends; the estimation of time series models with non-stationary variables; the existence of stable relationships among variables which are individually non-stationary
“…Previous work by Butler and Pakko (1998), calibrates an endogenous growth model where R&D drives the level of labor augmenting technology which in turn a¤ects the production of 2 As noted by the authors, this could be due to measurement errors in the data. 4 the …nal good.…”
Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract Using US data for the period 1959-2007, we identify sectoral productivity shocks and capital investment-speci…c shocks by employing a Vector Autoregression whose shock structure is disciplined by a general equilibrium model. Controlling for real and nominal factors, we …nd that capital investment-speci…c shocks explain 70 percent of ‡uctuations of R&D investment while R&D technology shocks explain 30 percent of the variation of aggregate output net of R&D investment (i.e. the output of the non-R&D sector). Technology shocks jointly explain almost all the variation of output in the R&D sector and 78 percent of the variation of output in the non-R&D sector.
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