ON DYNAMIC EFFICIENCY IN A GROWTH-MODEL WITH INCREASING RETURNS

Authors
KOHN M MARION N
Citation
M. Kohn et N. Marion, ON DYNAMIC EFFICIENCY IN A GROWTH-MODEL WITH INCREASING RETURNS, Economics letters, 41(1), 1993, pp. 93-98
Citations number
6
Categorie Soggetti
Economics
Journal title
Economics letters → ACNP
ISSN journal
01651765
Volume
41
Issue
1
Year of publication
1993
Pages
93 - 98
Database
ISI
SICI code
0165-1765(1993)41:1<93:ODEIAG>2.0.ZU;2-L
Abstract
The production externality at the heart of the knowledge-based growth literature reverses the standard analysis of efficient capital accumul ation. If the competitive equilibrium involves underinvestment relativ e to the social optimum, moving to the social optimum requires sacrifi ce by some in the standard decreasing returns case but requires no suc h sacrifice when there are knowledge spillovers.