Technologies for Endogenous Growth

I microfound endogenous growth through neoclassical technologies with substitutable inputs created by monopolistically competitive innovators. Investment delivers innovations of declining pro tability, but increasing labor force generates growth depending on structural technological parameters that determine the elasticities of pro ts and output relative to the mass of inputs. With a Cobb-Douglas technology in labor and a CES aggregator of inputs growth declines with the substitutability between inputs, with a nested CES technology growth vanishes as long as the substitutability between labor and inputs is less than unitary, and with a Diewert technology growth is sustainable for a high share of inputs in production