O. Liashenko, Doctor of Sciences (Economics), Professor Taras Shevchenko National University of Kyiv, Kyiv, Ukraine MODELLING OF ECONOMIC GROWTH WITH LEARNING BY DOING AND KNOWLEDGE SPILLOVERS

A generalized parametric model as a modified Romer model is considered. This model describes the dependence of the output of the index of knowledge available to the firm. Result of this paper is a family of models between the two extremes – the neoclassical model of decentralized type and nonstationary AK-model. The model assumes that all discoveries are unexpected by-products of the investment and that these discoveries instantly become common knowledge.

Keywords: economic growth; knowledge spillovers; AK-model; production function; endogenous growth.

Date of submission 25.02.2016

DOI: http://dx.doi.org/10.17721/1728-2667.2016/181-4/2

References

  1. Ramsey, F., 1928. A Mathematical Theory of Saving / F. Ramsey // Economic Journal, 38, December, 1928. – 543­559 p. DOI: http://dx.doi.org/10.2307/2224098
  2. Barro, R.J., Sala-i-Martin, ,2004. Economic Growth / R.J. Barro, X. Sala-i-Martin. – 2nd Edition. – Cambridge, Massachusets. – London, England: MIT Press, 2004. – 654 p.
  3. Lundberg, , 1937. Studies in the Theory of Economic Expansion / E. Lundberg. – London: King, 1937.
  4. Harrod, R.F., 1948. Towards a Dynamic Economics: Some Recent Developments of Economic Theory and Their Application to Policy / R.F. Harrod. – London: Macmillan, 1948.
  5. Domar, E.D., 1946. Capital Expansion, Rate of Growth and Employment / E.D. Domar // Econometrica. 1946, April. 14, pp. 137-147. DOI: http://dx.doi.org/10.2307/1905364
  6. Solow, R.M., 1956. A Contribution to the Theory of Economic Growth / R.M. Solow // Quarterly Journal of Economic, 70, February, 1956. – pp. 65-94. DOI: http://dx.doi.org/10.2307/1884513
  7. Swan, T.W., 1956. Economic Growth and Capital Accumulation / T.W. Swan // Economic Record, 32, November, 1956. – pp. 334-361. DOI: http://dx.doi.org/10.1111/j.1475-4932.1956.tb00434.x
  8. Romer, P.M., 1986. Increasing Returns and Long-Run Growth / P.M. Romer // Journal of Political Economy, 94, October, 1986. – pp.1002-1037. DOI: http://dx.doi.org/10.1086/261420
  9. Lucas, R.E., 1988. On the Mechanics of Economic Development / R.E. Lucas // Journal of Monetary Economics, 22, July, 1988. – pp. 3-42. DOI: http://dx.doi.org/10.1016/0304-3932(88)90168-7
  10. Cass, D., 1965. Optimum Growth in an Aggregative Model of Capital Accumulation / D. Cass // Review of Economic Studies, 32, July, 1965. – pp. 233-240. DOI: http://dx.doi.org/10.2307/2295827
  11. Koopmans, T.C., 1965. On the Concept of the Optimal Economic Growth / T.C. Koopmans // The Econometric Approach to Development Planning. – Amsterdam, North Holland, 1965.
  12. Arrow, K.J., 1962. The Economic Implications of Learning by Doing / K.J. Arrow // Review of Economic Studies. 1962. V. 29. 1. Pp. 155-173. DOI: http://dx.doi.org/10.2307/2295952
  13. Sheshinski, E., 1967. Optimal Accumulation with Learning by Doing / E. Sheshinski // Karl Shell ed., Esseys on the Theory of Optimal Economic Growth. – Cambridge, MA: MIT Press, 1967.
  14. Frankel, , 1962. The Production Function in Allocation and Growth. A Synthesis / M. Frankel // American Economic Review, 52, December, 1962. – pp. 995-1022. Stable URL: http://www.jstor.org/stable/1812179
  15. Griliches, Z., 1973. Research Expenditures and Growth Accounting / Z. Griliches // Science and Technology in Economic Growth. – New York, MacMillan, 1973.
  16. Romer, P.M., 1987. Growth Based on Increasing Returns Due to Specialization / P.M. Romer // American Economic Review. 1987, May. V. 77. 2. Pp. 56-62.
  17. Inada, Ken-Ichi, 1963. On a Two-Sector Model of Economic Growth: Comments and a Generalization / Ken-Ichi Inada // Review of Economic Studies. 30, June. – pp. 119-127. DOI: http://dx.doi.org/10.2307/2295809
  18. Von Neumann, J., 1937. Uber ein Okonomisches Gleichhungssystem und eine Veraligemeinerung des Brouwerschen / J. Von Neumann // Ergelmisse eines Mathematishe Kolloquiums, 8, 1937.
  19. Knight, F.H., 1944. Diminishing Returns from Investment / F.H. Knight // Journal of Political Economy, 52, March, 1944. – pp. 26-41. DOI: http://dx.doi.org/10.1086/256134
  20. Liashenko, O.I., 2015. Economic Growth under Condition of Knowledge Dissemination, Depending on the General Level of Capital-Labor. Economic and Mathematical Modelling of Socio-Economic Systems, 20, pp. 66-84.

Download