Abstract
Paper focusing on the three variants of endogenous growth as applied to the United Kingdom from 1948-2000. The new growth theory, which took off with Romer (1986, 1987) and Lucas (1988) reemphasises the role of saving and capital accumulation in growth. In this theory technical change is made endogenous9 by making the production function yield increasing returns to scale rather than the neoclassical constant returns to scale. The result is that the contribution of inputs such as capital to growth is greater than in the conventional neoclassical models. Further, the ability of firms to devote more resources to new research10 is linked to some form of market power. In this context the role of such factors as patents, monopolistic competition and protectionism in making possible increased resources for new research are emphasised.
| Original language | English |
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| Number of pages | 18 |
| Publication status | Published - 2002 |
| Event | Scottish Economics Society, Dundee - Dundee, Scotland Duration: 1 Apr 2002 → … |
Conference
| Conference | Scottish Economics Society, Dundee |
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| City | Dundee, Scotland |
| Period | 1/04/02 → … |
Keywords
- endogenous growth
- Adam Smith
- saving and investment
- market institutions
- development theory
- economic growth
