How does risk or uncertainty in the productivity of research affect the growth rate of the economy? To answer this … question, a model of endogenous technological change is used where sustained growth stems from intentional investments in R … this analysis is that the relationship between long-run growth and uncertainty (on the productivity of knowledge creation …

effect on the average growth rate of output. This theoretical ambiguity result is not solely determined by the value of the … is, the growth-uncertainty relationship depends on whether returns to scale in knowledge creation are increasing or non … effect on the average long-run growth rate. …