Skip to main content
×
Home
    • Aa
    • Aa
  • Get access
    Check if you have access via personal or institutional login
  • Cited by 1
  • Cited by
    This article has been cited by the following publications. This list is generated based on data provided by CrossRef.

    Chen, Been-Lon and Chu, Angus C. 2010. On R&D spillovers, multiple equilibria and indeterminacy. Journal of Economics, Vol. 100, Issue. 3, p. 247.


    ×

COMPARATIVE STATICS AND DYNAMICS OF THE ROMER R&D GROWTH MODEL WITH QUALITY UPGRADING

  • Lutz G. Arnold (a1) and Wolfgang Kornprobst (a1)
  • DOI: http://dx.doi.org/10.1017/S1365100508070375
  • Published online: 01 November 2008
Abstract

This paper replaces increasing product variety with quality upgrading in the Romer model [Romer, Paul M., Journal of Political Economy 98 (1990), S71–S102]. We show that the range of parameters for which a steady state exists can be divided into two subspaces with well-behaved comparative statics and saddle-point dynamics in one subspace, but with “perverse” comparative-statics properties and either equilibrium indeterminacy or instability in the other subspace. These results for the closed economy can also be used to characterize the dynamics of the M-country open-economy version of the model.

Copyright
Corresponding author
Address correspondence to: Lutz G. Arnold, Economic Theory, Department of Economics, University of Regensburg, 93040 Regensburg, Germany; e-mail: lutz.arnold@wiwi.uni-r.de.
Linked references
Hide All

This list contains references from the content that can be linked to their source. For a full set of references and notes please see the PDF or HTML where available.

Philippe Aghion and Peter Howitt (1992) A model of growth through creative destruction. Econometrica 60, 323351.

Philippe Aghion and Peter Howitt (2006) Joseph Schumpeter Lecture. Appropriate growth policy: A unifying framework. Journal of the European Economic Association 4, 269314.

Lutz G. Arnold (2000a) Endogenous technological change: A note on stability. Economic Theory 16, 219226.

Lutz G. Arnold (2000b) Stability of the market equilibrium in Romer's model of endogenous technological change: A complete characterization. Journal of Macroeconomics 22, 6984.

Lutz G. Arnold (2006) The dynamics of the Jones R&D growth model. Review of Economic Dynamics 9, 143152.

Jess Benhabib , Roberto Perli , and Danyang Xie (1994), Monopolistic competition, indeterminacy and growth. Ricerche Economiche 48, 279298.

Michael B. Devereux and Beverly J. Lapham (1994) The stability of economic integration and endogenous growth. Quarterly Journal of Economics 109, 299308.

Gene M. Grossman and Elhanan Helpman (1991b) Quality ladders in the theory of growth. Review of Economic Studies 58, 4361.

Charles I. Jones (1995) R&D-based models of economic growth. Journal of Political Economy 103, 759784.

Luis A. Rivera-Batiz and Paul M. Romer (1991) Economic integration and endogenous growth. Quarterly Journal of Economics 106, 531555.

Paul M. Romer (1990) Endogenous technological change. Journal of Political Economy 98, S71S102.

Sergey Slobodyan (2007) Indeterminacy and stability in a modified Romer model. Journal of Macro-economics 29, 169177.

Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Macroeconomic Dynamics
  • ISSN: 1365-1005
  • EISSN: 1469-8056
  • URL: /core/journals/macroeconomic-dynamics
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×

Keywords: