Working Paper: NBER ID: w10767
Authors: Charles I. Jones
Abstract: Ideas are different from nearly all other economic goods in that they are nonrivalrous. This nonrivalry implies that production possibilities are likely to be characterized by increasing returns to scale, an insight that has profound implications for economic growth. The purpose of this chapter is to explore these implications.
Keywords: economic growth; ideas; nonrivalry; increasing returns to scale
JEL Codes: O40; E10
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Nonrivalry of ideas (O34) | Increasing returns to scale in production (D24) |
| Population growth (J11) | Growth rate of ideas (O39) |
| Growth rate of ideas (O39) | Growth rate of output per capita (O47) |
| Population growth (J11) | Growth rate of output per capita (O47) |
| Increasing returns to scale due to nonrivalry (F12) | Problems with competitive equilibrium (D59) |