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| Joerg Lingens |
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| ''Policy implications of endogenous growth models: A Note'' |
| ( 2005, Vol. 15 No.13 ) |
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| In this note we analyse the effect of an increase in the amount of resources devoted to research within a general R&D growth model. We show that the initial effect of this increase is independent of whether the spill-over in R&D is linear or not. Even after two decades along a transitional growth path the direction as well as the magnitude of this effect on the rate of growth is very similar. Thus, linear spill-over models could be interpreted as a proxy for the transitional behaviour of non-linear spill-over models. If we consider transitional dynamics to be relevant, linear spill-over models could be reasonable descriptions of real world growth processes. |
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| Keywords: |
JEL: O3 - Technological Change; Research and Development: General
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| Manuscript Received : Mar 09 2005 | | Manuscript Accepted : Mar 09 2005 |
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