Introduction to Modern Economic Growth 13.5 Taking Stock 13.6 References and Literature 13.7 Exercises 598 600 601 Chapter 14.1 14.2 14.3 14.4 14.5 14.6 14 Models of Competitive Innovations The Baseline Model of Competitive Innovations A One-Sector Schumpeterian Growth Model Step-by-Step Innovations* Taking Stock References and Literature Exercises 609 610 623 629 645 646 647 Chapter 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15 Directed Technological Change Importance of Biased Technological Change Basics and Definitions Baseline Model of Directed Technological Change Directed Technological Change with Knowledge Spillovers Directed Technological Change without Scale Effects Endogenous Labor-Augmenting Technological Change Other Applications Taking Stock References and Literature Exercises 655 656 660 663 681 686 688 692 693 694 698 Part Stochastic Growth 705 Chapter 16.1 16.2 16.3 16.4 16.5 16.6 16.7 16 Stochastic Dynamic Programming Dynamic Programming with Expectations Policy Functions and Transitions Few Technical Details* Applications of Stochastic Dynamic Programming Taking Stock References and Literature Exercises 707 707 707 707 707 707 707 707 Chapter 17.1 17.2 17.3 17.4 17.5 17.6 17 Neoclassical Growth Under Uncertainty The Brock-Mirman Model Equilibrium Growth under Uncertainty Application: Real Business Cycle Models Taking Stock References and Literature Exercises 709 709 710 710 710 710 710 Chapter 18 Growth with Incomplete Markets vii 711