Towards endogenous recombinant growth

Yacov Tsur, Amos Zemel

    Research output: Contribution to journalArticlepeer-review

    19 Scopus citations


    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 languageEnglish
    Pages (from-to)3459-3477
    Number of pages19
    JournalJournal of Economic Dynamics and Control
    Issue number11
    StatePublished - 1 Nov 2007


    • 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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