Hu, Yunfang; Kemp, Murray C.; Shimomura, Koji - Research Institute for Economics and Business … - 2004
The Frankel-Romer-Lucas theory of endogenous growth rests on the assumption of knowledge-based externalities and price-taking representative households. It is argued that, in a context of long-run growth, these assumptions are mutually incompatible (that representative households will co-operate...