scholarly journals Using the Salop Circle to Study Scale Effects in Schumpeterian Growth Models: Why Inter-Sectoral Knowledge Diffusion Matters

2016 ◽  
Author(s):  
Elie Gray ◽  
Andre Grimaud
Keyword(s):  
Scale Effects ◽  
Growth Models ◽  
Knowledge Diffusion ◽  
Schumpeterian Growth

On the Effectiveness of Growth- Enhancing Policies in a Model of Growth Without Scale Effects

2002 ◽  
Vol 3 (3) ◽  
pp. 339-346 ◽  
Author(s):  
Lutz G. Arnold
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Human Capital ◽  
Population Growth ◽  
Capital Accumulation ◽  
Scale Effects ◽  
Growth Models ◽  
Empirical Studies ◽  
Human Capital Accumulation ◽  
Accelerate Growth

Abstract Standard R&D growth models have two disturbing properties: the presence of scale effects (i.e., the prediction that larger economies grow faster) and the implication that there is a multitude of growth-enhancing policies. Recent models of growth without scale effects, such as Segerstrom's (1998), not only remove the counterfactual scale effect, but also imply that the growth rate does not react to any kind of economic policy. They share a different disturbing property, however: economic growth depends positively on population growth, and the economy cannot grow in the absence of population growth. The present paper integrates human capital accumulation into Segerstrom's (1998) model of growth without scale effects. Consistent with many empirical studies, growth is positively related not to population growth, but to investment in human capital. And there is one way to accelerate growth: subsidizing education.

The refoundation of the symmetric equilibrium in Schumpeterian growth models

2007 ◽  
Vol 136 (1) ◽  
pp. 788-797 ◽  
Author(s):  
Guido Cozzi ◽  
Paolo E. Giordani ◽  
Luca Zamparelli
Keyword(s):  
Growth Models ◽  
Symmetric Equilibrium ◽  
Schumpeterian Growth

Effectiveness versus Efficiency: Growth-Accelerating Policies in a Model of Growth without Scale Effects

2006 ◽  
Vol 7 (3) ◽  
pp. 297-316 ◽  
Author(s):  
Bettina Büttner
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Scale Effects ◽  
Growth Models ◽  
Human Capital Accumulation ◽  
Growth Path ◽  
Balanced Growth ◽  
Long Run ◽  
Theoretical Finding ◽  
Balanced Growth Path

Abstract Recent R&D growth models without strong scale effects imply that long-run growth rates depend only on parameters that are usually taken to be exogenous. However, integrating human capital accumulation into models of this type, Arnold (2002) demonstrates that subsidizing education accelerates growth. The present paper addresses welfare issues in Arnold’s model. The main theoretical finding of the paper is that a system of subsidies that implements the optimal balanced growth path as a decentralized equilibrium includes zero subsidies to education, while R&D activity should be either subsidized or taxed. To shed further light on the latter result, the model is calibrated and it turns out that along the balanced growth path, the decentralized economy underinvests in R&D, i.e. R&D activities should be subsidized.

scholarly journals Trade, Domestic Frictions, and Scale Effects

2016 ◽  
Vol 106 (10) ◽  
pp. 3159-3184 ◽  
Author(s):  
Natalia Ramondo ◽  
Andrés Rodríguez-Clare ◽  
Milagro Saborío-Rodríguez
Keyword(s):  
Scale Effects ◽  
Growth Models ◽  
Relative Income ◽  
Standard Assumption ◽  
Fully Integrated ◽  
Income Levels ◽  
Country Size

Because of scale effects, idea-based growth models imply that larger countries should be much richer than smaller ones. New trade models share the same counterfactual feature. In fact, new trade models exhibit other counterfactual implications associated with scale effects: import shares decrease and relative income levels increase too steeply with country size. We argue that these implications are largely a result of the standard assumption that countries are fully integrated domestically. We depart from this assumption by treating countries as collections of regions that face positive costs to trade among themselves. The resulting model is largely consistent with the data. (JEL F11, F14, F43, O47, R12)

scholarly journals Technological Innovation, Resource Allocation, and Growth*

2017 ◽  
Vol 132 (2) ◽  
pp. 665-712 ◽  
Author(s):  
Leonid Kogan ◽  
Dimitris Papanikolaou ◽  
Amit Seru ◽  
Noah Stoffman
Keyword(s):  
Technological Innovation ◽  
Firm Growth ◽  
Growth Models ◽  
Economic Value ◽  
Creative Destruction ◽  
Schumpeterian Growth ◽  
Additional Information ◽  
Patent Counts ◽  
Scientific Value ◽  
Number Of Citations

Abstract We propose a new measure of the economic importance of each innovation. Our measure uses newly collected data on patents issued to U.S. firms in the 1926 to 2010 period, combined with the stock market response to news about patents. Our patent-level estimates of private economic value are positively related to the scientific value of these patents, as measured by the number of citations the patent receives in the future. Our new measure is associated with substantial growth, reallocation, and creative destruction, consistent with the predictions of Schumpeterian growth models. Aggregating our measure suggests that technological innovation accounts for significant medium-run fluctuations in aggregate economic growth and TFP. Our measure contains additional information relative to citation-weighted patent counts; the relation between our measure and firm growth is considerably stronger. Importantly, the degree of creative destruction that is associated with our measure is higher than previous estimates, confirming that it is a useful proxy for the private valuation of patents.

scholarly journals Intellectual Property Rights, Globalization and Growth

2006 ◽  
Vol 6 (4) ◽  
pp. 1850100 ◽  
Author(s):  
Piotr K Stryszowski
Keyword(s):  
Growth Rate ◽  
Intellectual Property ◽  
Property Rights ◽  
Intellectual Property Rights ◽  
Scale Effects ◽  
Trade Policies ◽  
Schumpeterian Growth ◽  
Technological Transfer ◽  
Empirical Tests ◽  
Parallel Growth

This paper presents a model that combines the key features of a Schumpeterian growth model without scale effects and a North-South model of trade. All open economies converge to parallel growth paths because of costly technological transfer. The effects of intellectual property rights (IPR) regimes and trade policies on the growth rate is studied, as well as on a given country's economic performance. The requirement that trade be balanced neutralizes all potential effects of the tariff policy on the world's growth rate, and on the performance of a single country. By contrast, an improvement of a given country's IPR regime is growth neutral, but improves a country's position in the world's productivity rank. These findings are illustrated by simple empirical tests.

Sign in / Sign up

Export Citation Format

Share Document