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Combining semi-endogenous and fully endogenous growth: A generalization

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  • Cozzi, Guido

Abstract

This paper shows that combining the semi-endogenous and the fully endogenous growth mechanisms with a general CES aggregator, either growth process can prevail in the balanced growth path depending on their degree of complementarity/substitutability. Policy-induced long-run economic switches to the fully endogenous steady state as the R&D employment ratio surpasses a positive threshold are possible if the two growth engines are gross substitutes.

Suggested Citation

  • Cozzi, Guido, 2017. "Combining semi-endogenous and fully endogenous growth: A generalization," Economics Letters, Elsevier, vol. 155(C), pages 89-91.
    • Handle: RePEc:eee:ecolet:v:155:y:2017:i:c:p:89-91
    DOI: 10.1016/j.econlet.2017.03.027
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    Cited by:

    1. Dinopoulos, Elias & Grieben, Wolf-Heimo & Şener, Fuat, 2023. "A Policy Conundrum: Schumpeterian Growth or Job Creation?," Economic Modelling, Elsevier, vol. 126(C).
    2. Etro, Federico, 2023. "Technologies for endogenous growth," Journal of Mathematical Economics, Elsevier, vol. 105(C).
    3. Peretto, Pietro F., 2018. "Robust endogenous growth," European Economic Review, Elsevier, vol. 108(C), pages 49-77.
    4. Ruiyang Hu & Yibai Yang & Zhijie Zheng, 2023. "Effects of subsidies on growth and welfare in a quality‐ladder model with elastic labor," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 25(5), pages 1096-1137, October.
    5. Caner Demir & Aykut Lenger, 2019. "Intellectual property rights and global imitation chains: the north–south–east model," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(2), pages 549-569, July.
    6. Etro, Federico, 2019. "The Romer model with monopolistic competition and general technologies," Economics Letters, Elsevier, vol. 181(C), pages 1-6.
    7. Steven Bond‐Smith, 2019. "The Decades‐Long Dispute Over Scale Effects In The Theory Of Economic Growth," Journal of Economic Surveys, Wiley Blackwell, vol. 33(5), pages 1359-1388, December.
    8. Chu, Angus C. & Cozzi, Guido, 2019. "Growth: Scale or market-size effects?," Economics Letters, Elsevier, vol. 178(C), pages 13-17.
    9. Gilad Sorek, 2024. "Schumpeterian Growth with Variable Demand Elasticity," Auburn Economics Working Paper Series auwp2024-04, Department of Economics, Auburn University.
    10. Grimaud, André & Gray, Elie, 2024. "Inter-Sectoral Knowledge Diffusion and Scale Effects in Schumpeterian Growth Models," TSE Working Papers 24-1577, Toulouse School of Economics (TSE).
    11. Chu, Angus C. & Wang, Xilin, 2022. "Effects Of R&D Subsidies In A Hybrid Model Of Endogenous Growth And Semi-Endogenous Growth," Macroeconomic Dynamics, Cambridge University Press, vol. 26(3), pages 813-832, April.

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    More about this item

    Keywords

    Strong scale effect; Semi-endogenous growth; Fully endogenous growth;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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