Question

Discuss the role of knowledge spillovers in the context of endogenous growth models

Discuss the role of knowledge spillovers in the context of endogenous growth models

Homework Answers

Answer #1

Endogeneous growth model depicts that investment in knowledge, human capital and innovation are the main contributors of economic growth. It aims to show economic development as a result of knowledge spillover effect and a prolonged investment in building human capital by investing in education and innovation essential for long run growth of the economy.

A simple endogeneous model is the AK model where parameter A represents technological progress. The model does not require the assumption of diminishing returns to scale. The model is trying to promote economies which favour openness to trade, competition, innovation and change will promote growth in the long run.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Critically eveluate how endogenous growth models overcome the limitations of exogenous growth models. Discuss in detail...
Critically eveluate how endogenous growth models overcome the limitations of exogenous growth models. Discuss in detail at least one mechanism that can explain endogenous growth
Explain the important difference between the Solow growth model and any of the endogenous growth models.
Explain the important difference between the Solow growth model and any of the endogenous growth models.
write 1-2 paragraphs discussing what the Solow and endogenous growth models mean for The United States....
write 1-2 paragraphs discussing what the Solow and endogenous growth models mean for The United States. What should policymakers consider in order to encourage economic growth in the county?
Define the main ideas of the Lucas, and AK new growth model respectively. Is growth endogenous...
Define the main ideas of the Lucas, and AK new growth model respectively. Is growth endogenous or exogenous in these models?
Considering both Solow and Endogenous growth models, show graphically what happens to GDP when the population...
Considering both Solow and Endogenous growth models, show graphically what happens to GDP when the population growth in a country goes down. This should be done on one graph so you can compare with GDP and time on the axis.
briefly discuss the AK model of endogenous growth. what is its prediction regarding income convergence?
briefly discuss the AK model of endogenous growth. what is its prediction regarding income convergence?
8. Endogenous Growth Model In the endogenous growth model, suppose that the efficiency with which human...
8. Endogenous Growth Model In the endogenous growth model, suppose that the efficiency with which human capital is accumulated falls. What happens in the short run and the long run to consumption in this country?
In light of government expenditure discuss the Micro Models of expenditure growth?
In light of government expenditure discuss the Micro Models of expenditure growth?
Discuss the valuation content of growth opportunities in a real options context.
Discuss the valuation content of growth opportunities in a real options context.
"Outline the essential propositions of new (endogenous) growth theory."
"Outline the essential propositions of new (endogenous) growth theory."
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT