Aghion, Philippe and Peter Howitt (1997). Endogenous Growth Theory, MIT Press, Cambridge Massachussetts.  Home/Search   Document Not in Database   Summary   Related Articles   Check

....agent fo C(t) W = e Ptdt, 1) where C(t) denotes consumption, p 0 is the discount rate, and 1 er 0 is the intertemporal elasticity of consumption. Output is determined by the Cobb Douglass technology = K (uU , 2) where K is physical capital, H denotes human capital, u [0, 1] is the portion of time devoted to production of the final output, and a (0, 1) is the elasticity of output with respect to the physical capital. The final good is consumed, invested to accumulate physical capital or to replace depreciated old capital. Hence = Y C 5K. 3) Although in some ....

Aghion,P. and P. Howitt (1998) Endogenous Growth Theory The MIT Press.

.... to technology (see Figure 1) Its most relevant aspect is that technological change is no longer an exogenous factor generated outside the economic process, but rather a result of the allocative choices of economic agents, therefore affecting productivity and growth patterns from the inside [15]. There are two core approaches to explain endogenous technical change. In the first one, a new R D sector is considered along with the traditional economic sectorsmanufacturing, primary, etc. This sector also requires the use of factor inputs and responds to profit opportunities that arise from ....

....the full extent to which there is learning potential in a new technology. 4 As a result, in latecomer countries private investment levels in activities with learning or spill over potential tend to be lower than the social optimum, and may even create low level development equilibrium traps [15, 24]. This happens when private but not social returns from productivity enhancing investmenti.e. accounting for spillovers, are below those of non productivity enhancing investments, causing a stagnation in countries growth. This situation may be overcome by including the spill over effects in the ....

Aghion, P. and Howitt, P., Endogenous Growth Theory, MIT Press, Cambridge, 1998, Ch. 1.

....applications, an incomplete list of references, in which mainly deterministic di#erence and di#erential equations are employed, follows. For neoclassical growth theory, see e.g. the original papers by Solow [49] and Swan [52] and the respective chapters in the textbooks by Aghion and Howitt [1] and Barro and Sala i Martin [8] For intertemporal macroeconomics in the overlapping generations framework, see e.g. the pioneering work by Diamond [19] and the textbook by Azariadis [7] 5 For instance, the evolution of prices, allocations of goods and services, and aggregate quantities such as ....

....sample paths of the stochastic Solow model is uniquely determined by a random fixed point. The result is due to Schenk Hoppe and Schmalfu [48] The result is further applied in a study of the Golden Rule saving rate in Schenk Hoppe [46] Theorem 4. 2 Assume that #(#) # [# min , # max ] # [0, 1], n(#) # [n min , nmax ] # ] 1, #[ and #(#) # [# min , #[# ]0, #[ with E# #. Assume further that f is non negative, increasing, strictly concave, and continuously di#erentiable. Suppose that (i) # max nmax 0; ii) 0 # lim k## f # (k) # max nmax # min lim ....

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P. Aghion and P. Howitt. Endogenous Growth Theory. MIT Press, Cambridge MA, 1998.

....1 The name AK comes from the simplest form of the models production function in the simplest case, namely, Y = AK. Here A is a positive constant representing the economy s level of technology and K is the economy s stock of capital. 2 For reviews, see Barro and Sala i Martin 1995 and Aghion and Howitt 1998. 3 For more details about two sector endogenous growth models, see Lucas 1988, 1990; King and Rebelo 1990; Rebelo 1991; Kim 1992; Jones, Manuelli, and Rossi 1993; Barro and Sala i Martin 1995; Stokey and Rebelo 1995; Jones and Manuelli 1997; and McGrattan and Schmitz 1998. 4 Jones (1995) also ....

Aghion, Philippe, and Howitt, Peter. 1998. Endogenous growth theory. Cambridge, Mass.: MIT Press.

....while the past history reflects the cost structure of the old technology. Clearly when future expectations dominate the growth process, it would exhibit a process of creative destruction in the Schumpeterian sense. This would however be different from the creative destruction model put forward by Aghion and Howitt (1998), which postulates that a successful innovator drives out the previous incumbent by undercutting his process and creating a local monopoly, e.g. through patents until driven out by the next innovator. In our approach here the 12 innovation follows a stochastic process, where the evolutionary ....

Aghion, P. and Howitt, P. (1998). Endogenous Growth Theory, Cambridge, Massachusetts, MIT Press.

....social security that has a positive effect on the accumulation of human capital. The latter is central to recent developments in the field of income inequality and economic growth (see inter alia Banerjee and Newman, 1991, Galor and Zeira, 1993, Perotti, 1993 and, for an overview, Bnabou, 1996 or Aghion and Howitt, 1998). A faster accumulation of human capital would in its turn stimulate economic growth, possibly through a greater degree of innovation, and neutralise the cost increasing effect of social protection. Hence, conceiving the relationship between social security protection and innovation as exclusively ....

Aghion P. and P. Howitt, 1998, Endogenous Growth Theory, Cambridge Mass., MIT-Press.

....change the quality when the good is already produced. On the demand side, there is a continuum of consumers with different utility from the consumption of the durable good. Each consumer is associated with a type # known only to himself. Consumer types are uniformly distributed over the range [0, 1]. Consumers may consume at most one unit of the durable good in each period. The consumer of type # gets utility s i # from the consumption of the good of quality s i per period, i = L, H. There is no externality among the consumers such as a network effect. Consumers and firms have a common ....

....are sold only the old product. That is, the incumbent price discriminates by offering two different price quality packages. The results are summarized in the next proposition. Table 2 and 3 present the equilibrium values of profits and prices. Proposition 1 There exist unique values z 1 , z 2 # [0, 1] , with 0 z 1 z 2 1 2, such that the incumbent s optimal sales pattern in # I takes the following form: 1. If z 2 # 1 # 1, the incumbent sells the new product in both markets at different prices, p U = max s # # 1 , s # 2 p H = s L s # )# 1 2. 2. If z 1 # 1 # z 2 , the ....

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Aghion, P. and Howitt, P. (1998), Endogenous Growth Theory, MIT Press, Cambridge, Massachusetts.

.... time, while successful ideas are imitated to become more prevalent (reproduction) 5 Second, researchers experiment by combining components of different ideas to generate completely new ideas (recombination) Imitation increases the 4 Helpman s (1998) model of general purpose technology and Aghion and Howitt s (1998) model of basic and applied research also introduce more sophisticated research processes. However, these models are primarily focussed on the different natures of technologies (basic, applied, process, product) affect growth rather than how innovations come about, which is the topic of this ....

....this assumption feeds into predictions about countries growth rates and the effects of openness to foreign ideas. 10 In Section 3, we endogenize research productivity in this 10 Details of the basic quality ladder model can be obtained from the original Aghion and Howitt (1992) paper. See also Aghion and Howitt (1998) for a summary of various extensions that can (and have been) made to the model to make it more realistic. None of these extensions alter the impact of evolutionary search on economic growth; all the qualitative results reported below are robust. 6 model by introducing the search algorithm as a ....

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Aghion, P. and P. Howitt, 1998, Endogenous Growth Theory, Cambridge and London: MIT Press.

....labor market institutions are likely to be good for growth and which bad. Of course, economists have views on the matter, but there is no consensus founded on solid empirical research. For example, the thorough and comprehensive in coverage books on growth by Barro and Sala i Martin (1995) and Aghion and Howitt (1998) do not mention a single labor market institution that might influence growth. But they do devote space to what they consider the key to growth in many variants of their models, human capital. The same can be said for the recent survey on labor markets and 1 Similar conclusions are reached by ....

Aghion, P. and P. Howitt (1998). Endogenous Growth Theory. Cambridge, MA: MIT Press.

....(1989) provide a for summary of empirical tests of Schumpeterian Hypotheses. More recently, Nickell (1996) Nickell et al. (1997) and Blundell et al. (1995) show negative correlations. 2 Quality ladder models do not address the issue because they assume unitary elasticity of substitution, see Aghion and Howitt (1992, 1997). 2 degrees of monopoly power, because cutting edge firms may capture larger shares and old production lines become obsolete earlier. The one salient feature of the empirical literature is that industry specific variables hold the most power in explaining the effect of market structure on ....

Aghion P. and P. Howitt, (1997), Endogenous Growth Theory, Cambrid. MA: MIT Press. Aghion, P., Harris, C., and Vickers, J. 1997. Competition and Growth with Step-by-Step Innovation: An Example European-Economic-Review;41(3-5), 771-82.

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Aghion, Philippe and Peter Howitt (1997). Endogenous Growth Theory, MIT Press, Cambridge Massachussetts.

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Aghion, P. and Howitt, P. (1998). Endogenous Growth Theory. Cambridge, MA; MIT Press. 36

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Aghion, Ph., and Howitt, P., 1998, Endogenous Growth Theory, M.I.T. Press, Cambridge.

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Aghion, Philippe and Peter Howitt. (#998). Endogenous Growth Theory. Cambridge, Mass.: MIT Press.

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Aghion, P. and Howitt, P. (1998). Endogenous Growth Theory. MIT Press, Cambridge.

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Aghion, P., Howitt, P., 1998. Endogenous Growth Theory, first ed. The MIT Press, Cambridge.

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Aghion, Philippe, and Peter Howitt. 1998. Endogenous Growth Theory. Cambridge, MA: MIT Press.

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Aghion, Philippe and Peter Howitt. (1998). Endogenous Growth Theory. Cambridge, Mass.: MIT Press.

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Aghion, Philippe and Peter Howitt (1998) Endogenous Growth Theory, Cambridge MIT Press.

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P. Aghion and P. Howitt. Endogenous Growth Theory. MIT Press, 1998.

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Aghion, P., and Howitt, P., Endogenous Growth Theory , The MIT Press, Cambridge, MA, 1998.

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