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This paper reconciles the recent vs. very long-run evidence on scale effects in endogenous growth models by extending Howitt's (1999) model to include a subsistence constraint in consumption. Scale effects will be present only when this constraint is binding.
Persistent link: https://www.econbiz.de/10008551437
This paper presents a simple model of growth over the very long run that distinguishes between scientific knowledge and technology. Making this distinction highlights the importance of the scientific revolution to the emergence of modern sustained economic growth.
Persistent link: https://www.econbiz.de/10005355755