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In this note we study aspects of economic growth in a region that produces a final consumption good with creative and physical capital. This consumption good is manufactured with a production function that exhibits increasing returns to scale. Our analysis leads to three results. First, we...
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predictions of models of endogenous innovation suggest that this increased research effort should lead to more rapid growth. As … innovation to allow for the possibility that a rise in the profitability of innovative activity could lead to an increased …
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