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Technological-Knowledge Dynamics in Lab-Equipment Models of Quality Ladders

Author

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  • Pedro Mazeda Gil

    (Faculdade de Economia, Universidade do Porto and CEMPRE, Rua Dr Roberto Frias, 4200-464, Porto, Portugal.)

  • Óscar Afonso

    (Faculdade de Economia, Universidade do Porto and CEMPRE, Rua Dr Roberto Frias, 4200-464, Porto, Portugal.)

Abstract

The Perpetual Inventory Model (PIM) assumes that, in each period, an arbitrary constant fraction of technological-knowledge stock is lost. By connecting the aggregate resource constraint with firms’ market value, we give a theoretical background to the PIM by showing that the technological-knowledge accumulation follows a dynamic process with an endogenous depreciation rate, which remains stable in steady state. Moreover, we relate different concepts of technological-knowledge used in the literature.

Suggested Citation

  • Pedro Mazeda Gil & Óscar Afonso, 2008. "Technological-Knowledge Dynamics in Lab-Equipment Models of Quality Ladders," FEP Working Papers 283, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:283
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    endogenous growth; endogenous depreciation rate; Perpetual Inventory Model; technological-knowledge dynamics;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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