Towards endogenous recombinant growth

Yacov Tsur; Amos Zemel

doi:10.1016/j.jedc.2006.12.002

Towards endogenous recombinant growth

Yacov Tsur, Amos Zemel

Research output: Contribution to journal › Article › peer-review

19 Scopus citations

Abstract

We study Weitzman's recombinant growth framework with optimally chosen R&D, consumption and saving. The analysis is carried out in the knowledge-capital state space by means of two characteristic curves: one is identified as a turnpike along which growing economies evolve; the other attracts stagnating economies. Sustained growth depends on a condition relating the slopes of the characteristic curves as well as on a minimal endowment requirement. A growing economy reaches the turnpike and evolves along it thereafter. In the long run the shares of income devoted to R&D, saving and consumption approach constant values that depend on the asymptotic characteristic slopes.

Original language	English
Pages (from-to)	3459-3477
Number of pages	19
Journal	Journal of Economic Dynamics and Control
Volume	31
Issue number	11
DOIs	https://doi.org/10.1016/j.jedc.2006.12.002
State	Published - 1 Nov 2007

Keywords

Balanced growth
Combined ideas
Knowledge generation
Optimal R&D
Turnpike

ASJC Scopus subject areas

Economics and Econometrics
Control and Optimization
Applied Mathematics

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10.1016/j.jedc.2006.12.002

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title = "Towards endogenous recombinant growth",

abstract = "We study Weitzman's recombinant growth framework with optimally chosen R&D, consumption and saving. The analysis is carried out in the knowledge-capital state space by means of two characteristic curves: one is identified as a turnpike along which growing economies evolve; the other attracts stagnating economies. Sustained growth depends on a condition relating the slopes of the characteristic curves as well as on a minimal endowment requirement. A growing economy reaches the turnpike and evolves along it thereafter. In the long run the shares of income devoted to R&D, saving and consumption approach constant values that depend on the asymptotic characteristic slopes.",

keywords = "Balanced growth, Combined ideas, Knowledge generation, Optimal R&D, Turnpike",

author = "Yacov Tsur and Amos Zemel",

note = "Funding Information: Yacov Tsur acknowledges the kind hospitality of the Department of Agricultural and Resource Economics at the University of California, Berkeley, for a sabbatical leave during which this paper was written. Amos Zemel gratefully acknowledges financial support by the Paul Ivanier Center of Robotics Research and Production Management, Ben Gurion University of the Negev. ",

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AU - Tsur, Yacov

AU - Zemel, Amos

N1 - Funding Information: Yacov Tsur acknowledges the kind hospitality of the Department of Agricultural and Resource Economics at the University of California, Berkeley, for a sabbatical leave during which this paper was written. Amos Zemel gratefully acknowledges financial support by the Paul Ivanier Center of Robotics Research and Production Management, Ben Gurion University of the Negev.

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N2 - We study Weitzman's recombinant growth framework with optimally chosen R&D, consumption and saving. The analysis is carried out in the knowledge-capital state space by means of two characteristic curves: one is identified as a turnpike along which growing economies evolve; the other attracts stagnating economies. Sustained growth depends on a condition relating the slopes of the characteristic curves as well as on a minimal endowment requirement. A growing economy reaches the turnpike and evolves along it thereafter. In the long run the shares of income devoted to R&D, saving and consumption approach constant values that depend on the asymptotic characteristic slopes.

AB - We study Weitzman's recombinant growth framework with optimally chosen R&D, consumption and saving. The analysis is carried out in the knowledge-capital state space by means of two characteristic curves: one is identified as a turnpike along which growing economies evolve; the other attracts stagnating economies. Sustained growth depends on a condition relating the slopes of the characteristic curves as well as on a minimal endowment requirement. A growing economy reaches the turnpike and evolves along it thereafter. In the long run the shares of income devoted to R&D, saving and consumption approach constant values that depend on the asymptotic characteristic slopes.

KW - Balanced growth

KW - Combined ideas

KW - Knowledge generation

KW - Optimal R&D

KW - Turnpike

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Towards endogenous recombinant growth

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Keywords

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