Abstract
This paper argues that the 'scale effects' prediction of many recent R&D-based models of growth is inconsistent with the time-series evidence from industrialized economies. A modified version of the Romer model that is consistent with this evidence is proposed, but the extended model alters a key implication usually found in endogenous growth theory. Although growth in the extended model is generated endogenously through R&D, the long-run growth rate depends only on parameters that are usually taken to be exogenous, including the rate of population growth. Copyright 1995 by University of Chicago Press.
Keywords
RomerEndogenous growth theoryEconomicsGrowth modelPopulation growthGrowth theoryGrowth rateEconometricsPopulationMathematical economicsKeynesian economicsMathematicsHuman capitalEconomic growth
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Publication Info
- Year
- 1995
- Type
- article
- Volume
- 103
- Issue
- 4
- Pages
- 759-784
- Citations
- 2987
- Access
- Closed
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Cite This
Charles I. Jones
(1995).
R & D-Based Models of Economic Growth.
Journal of Political Economy
, 103
(4)
, 759-784.
https://doi.org/10.1086/262002
Identifiers
- DOI
- 10.1086/262002