TY  - JOUR
AU  - Romer,Paul
TI  - Endogenous Technological Change
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3210
PY  - 1991
Y2  - January 1991
UR  - http://www.nber.org/papers/w3210
L1  - http://www.nber.org/papers/w3210.pdf
N1  - Author contact info:
Paul M. Romer
Stern School of Business
New York University
E-Mail: paul@paulromer.net
AB  - Growth in this model is driven by technological change that arises from intentional investment decisions made by profit maximizing agents. The distinguishing feature of the technology as an input is that it is neither a conventional good nor a public good; it is a nonrival, partially excludable good. Because of the nonconvexity introduced by a nonrival good, price-taking competition cannot be supported, and instead, the equilibriumis one with monopolistic competition. The main conclusions are that the stock of human capital determines the rate of growth, that too little human capital is devoted to research in equilibrium, that integration into world markets will increase growth rates, and that having a large population is not sufficient to generate growth.
ER  -