ROMER’S ENDOGENOUS GROWTH MODEL 发表评论(0) 编辑词条

 Romer assume that the economic growth springs from knowledge and R&D. In the mircro level, it is a model of profit-seeking firms investing in R&D, which sets the technology endogenous. Romer model can be mathematically expressed as

Y=Ka(ALY)1-a
=1 =1
A is technology. A firm’s R&D raises its profits, but also has a positive externality on other firms’ R&D productivity. Labour used either to produce output (LY) or technology (LA). Total labour supply is L = LY + LA.