Sequeira, Tiago Neves; Ferreira-Lopes, Alexandra - In: Estudios de Economia 41, 1 Year 2014, pp. 149-159
In this note we study the distortions in an endogenous growth model developed by Grimaud and Tournemaine (2007), where new pieces of knowledge are produced in a R&D sector and used to reduce pollution emissions. Using this model along with a realistic calibration, we conclude that the economy...