Working Paper: NBER ID: w4527
Authors: Gene M. Grossman; Elhanan Helpman
Abstract: This paper makes the case that purposive, profit-seeking investments in knowledge play a critical role in the long-run growth process. First, we review the implications of neoclassical growth theory and the more recent theories of 'endogenous growth'. Then we discuss the empirical evidence that bears on the modeling of long-run growth. Finally, we describe in more detail a model of growth based on endogenous technological progress and discuss the lessons that such models can teach us.
Keywords: endogenous growth; technological progress; economic growth
JEL Codes: O30; O31; O32
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| investments in knowledge (O36) | technological progress (O33) |
| technological progress (O33) | economic growth (O49) |
| investments in knowledge (O36) | economic growth (O49) |
| external economies and spillovers from capital accumulation (O49) | economic growth (O49) |