An Endogenously Derived Ak Model of Economic Growth

Abstract

Assuming a production process with returns to scale that vary with the intensity it is operated at, an AK-model of endogenous growth with constant returns to scale in production is shown to arise due to replication driven by profit-maximization. If replication occurs at the efficiency-maximizing scale, the result applies also when the number of production processes must be discrete, thus overcoming the so-called integer problem. When competition is imperfect, there is only convergence toward the AK-model for large enough input use, so an economy is more prone to stalling in a steady-state without growth, the smaller and less competitive it is. Inefficient scaling also raises the risk of stalling. JEL Codes: O11; O40

Effects of Digital Transformation on Total Factor Productivity of Cultural Enterprises—Empirical Evidence from 251 Listed Cultural Enterprises in China

“…In Equation (8), µ it represents the probability of success of R&D innovation in cultural enterprises, INT it is the degree of utilization of the digital transformation by cultural enterprises, R it is the amount of R&D innovation investment of cultural enterprises, and B it is the level of technical efficiency that cultural enterprises are expected to improve through R&D innovation. It should be noted that Jones & Manuelli and Jensen pointed out that externalities in the economy can be transformed into a general form shaped like the AK model after being endogenized by the model [38,39]. The effect of INT it is introduced by directly multiplying it by an abstract function g, drawing heavily on the AK model in the first generation of endogenous growth theory.…”