TY  - JOUR
AU  - Benhabib,Jess
AU  - Jovanovic,Boyan
TI  - Externalities and Growth Accounting
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3190
PY  - 1989
Y2  - November 1989
UR  - http://www.nber.org/papers/w3190
L1  - http://www.nber.org/papers/w3190.pdf
N1  - Author contact info:
Jess Benhabib
Department of Economics
New York University
19 West 4th Street, 6th Floor
New York, NY 10012
Tel: 212/998-8971
Fax: 212/995-4186
E-Mail: jess.benhabib@nyu.edu

Boyan Jovanovic
New York University
Department of Economics
19 W. 4th Street, 6th Floor
New York, NY  10012
Tel: 212/998-8953
Fax: 212/995-4186
E-Mail: Boyan.Jovanovic@nyu.edu
AB  - We reexamine several bodies of data on the growth of output, labor, and capital, within the context of a model that admits the possibility of an externality to the capital input. The model is an augmented version of Paul Romer's (1987) reformulation of the Solow model. Unlike Romer, however, we find no evidence of an externality to capital. This finding implies nothing about the size of possible spillovers in the creation of  knowledge because in our model, causality runs exclusively from knowledge to capital.
ER  -