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Asymptotic growth ratesin knowledge‐exchanging economies (1999)

Borisov, V.F. ; Hutschenreiter, G. ; Kryazhimskii, A.V.

Springer

Annals of operations research 89 (1999), S. 61-73

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ISSN: 1572-9338

Source: Springer Online Journal Archives 1860-2000

Topics: Mathematics , Economics

Notes: Abstract Two ODE models of innovation dynamics based on Grossman and Helpman's endogenousgrowth model with horizontal product differentiation are coupled through knowledge exchange.It is shown that in the coupled model, the steady rates of innovation are asymptotically stabilizedat a unique level higher than the autarky growth rate in each economy. The steady rate ofinnovation common to both countries is positively related to each country's ability to absorbknowledge from abroad. Conditions sufficient for the existence of a steady trajectory areprovided.

Type of Medium: Electronic Resource

URL: http://dx.doi.org/10.1023/A:1018944127579

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