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A New Asymptotically Non-Scale Endogenous Growth Model

Author

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  • Taiji Harashima

    (University of Tsukuba & Cabinet Office of Japan)

Abstract

The paper explores an endogenous growth model in which scale effects asymptotically vanish and an economy grows without population growth. The key mechanism behind these features is substitution between investing in capital and in knowledge when firms face growing uncompensated knowledge spillovers. The model shows that firms invest more in capital than in knowledge and thus scale effects asymptotically evaporate as the number of population and thus uncompensated knowledge spillovers increase, and an economy grows without population growth.

Suggested Citation

  • Taiji Harashima, 2004. "A New Asymptotically Non-Scale Endogenous Growth Model," Development and Comp Systems 0412009, University Library of Munich, Germany, revised 01 Mar 2005.
    • Handle: RePEc:wpa:wuwpdc:0412009
    Note: Type of Document - pdf; pages: 37
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/dev/papers/0412/0412009.pdf
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    References listed on IDEAS

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    Cited by:

    1. Harashima, Taiji, 2012. "Sustainable Heterogeneity as the Unique Socially Optimal Allocation for Almost All Social Welfare Functions," MPRA Paper 40938, University Library of Munich, Germany.

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    More about this item

    Keywords

    Endogenous growth; Scale effects; Non scale model; Uncompensated knowledge spillover;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General

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