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Economic growth and economic development 614

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Introduction to Modern Economic Growth the stock of knowledge and output per capita did not exhibit steady growth before the 19th century Some of these questions will be addressed later in the book 13.6 References and Literature Models of endogenous technological progress were introduced in Romer (1987 and 1990), and then subsequently analyzed by, among others, Segerstrom, Anant and Dinopoulos (1990), Grossman and Helpman (1991a,b), Aghion and Howitt (1992) The lab equipment model presented in Section 13.1 appears in Rivera-Batiz and Romer (1991) The model in Romer (1990) is similar to that presented in Section 13.2, but with skilled workers working in R&D The critique of endogenous growth models because of scale effect is contained in Backus, Kehoe and Kehoe (1992) and in Jones (1995) The first of these papers pointed out that countries with larger sizes (either without adjustment or adjusted for international trade) not grow faster in the postwar era Jones (1995), on the other hand, focused on time-series patterns and pointed out the substantial increase in R&D inputs, for example, the total number of workers involved in research, with no corresponding increase in the equilibrium growth rate Others argued that looking at the 20th century data may not be sufficient to reach a conclusion on whether there is a scale effect or not Kremer (1993) argues, on the basis of estimates of world population, that there must have been an increase in economic growth over the past one million years Laincz and Perreto (1996) argue that R&D resources allocated to specific product lines have not increased The model in Section 13.3 is similar to that presented in Jones (1995) and Jones (1999) As pointed out there, these models generate sustained growth of per capita income, but the growth rate of the economy does not respond to policies or preferences (given the rate of population growth) A number of authors have developed models of endogenous growth without scale effect, where policy might have an effect on the equilibrium growth rate See, among others, Dinopoulos and Thompson (1998), Segerstrom (1998), Howitt (1999) and Young (1998) Aghion and Howitt (1998) and Ha and Howitt (2005) argue that semi-endogenous growth models along these lines also have difficulty when confronted with the time-series evidence 600

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