An Evolutionary Interpretation of the Aghion & Howitt (1992) Model

We test the robustness of the main growth mechanisms of the original Aghion & Howitt model by relaxing two central assumptions: the homogeneity of the agents and perfect foresight. To this end, we introduce boundedly rational firms in the R&D sector that are capable of learning. Our first results show that the original AH assumptions are essential for continuous endogenous growth of the economy.

MoreLess

Year of publication:	2002
Authors:	Silverberg, Gerald ; Yildizoglu, Murat
Institutions:	Groupe de Recherche en Économie Théorique et Appliquée (GREThA), Université de Bordeaux
Subject:	Endogenous growth \| evolutionary dynamics \| learning with bounded rationality

More details

Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Classification:	D83 - Search, Learning, Information and Knowledge
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005133008