Grossmann, Volker; Steger, Thomas M. - Universität <Hannover> / Wirtschaftswissenschaftliche … - 2010
interpreted as the
economy’s stock of knowledge. A
0
> 0 is given. The labor market is perfect.
In each sector i there is one firm … social planner takes R&D externalities into account. Using (2), he
observes the knowledge accumulation condition
˙
A =
ν
1+ψ … economic surplus from raising the knowledge stock of the economy. To see this,
note from (7), (10) and (11) that instantaneous …