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); innovation returns are modeled as following an ex ante known probability distribution. By assuming that innovation outcomes are …
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); innovation returns are modeled as following an ex ante known probability distribution. By assuming that innovation outcomes are …
Persistent link: https://www.econbiz.de/10013412825
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We provide an outline for viewing the middle-income trap through the lens of the Schumpeterian growth paradigm, which places the notion of creative destruction at the center of economic growth. Economic growth and development come from the interplay between changes in economic structure and...
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We study innovation and the resulting Schumpeterian economic growth that this innovation gives rise to in a model with … balanced growth path (BGP) allocations and the equilibrium of interest. Second, we stipulate the form of the innovation … little innovation in (i) the ith region, (ii) an aggregate economy of N>2 regions and (iii) an aggregate economy of N=2 …
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political elites. The model takes a rent-seeking government that can block innovation, and incorporates it into a Schumpeterian … growth model. The quality of a country's institutions is reflected in the cost of innovation blocking. An increase in the … level of innovation blocking activity will reduce the rate of innovation and therefore reduce growth. The government also …
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