Zusammenfassung
The dynamics of most prominent endogenous growth models are well understood. One notable exception is the Jones R & D growth model [Jones, C.I., 1995. R & D based models of economic growth. Journal of Political Economy 103, 759-784]. This paper provides an analytical treatment of this model's transitional dynamics. It is shown that, given constant returns to labor in R & D (as conventionally ...
Zusammenfassung
The dynamics of most prominent endogenous growth models are well understood. One notable exception is the Jones R & D growth model [Jones, C.I., 1995. R & D based models of economic growth. Journal of Political Economy 103, 759-784]. This paper provides an analytical treatment of this model's transitional dynamics. It is shown that, given constant returns to labor in R & D (as conventionally assumed in R & D growth models), a unique trajectory converging to the balanced growth path exists. The equilibrium growth path can be monotonic or oscillatory. Moreover, applying a theorem from [Arnold, L.G., 2005. The dynamics Of multi-country R & D growth models. University of Regensburg Discussion Papers in Economics, No. 404. February], this result can be used to characterize the dynamic behavior of the multi-country open-economy version of the model. (c) 2005 Elsevier Inc. All rights reserved.
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