Autori
Del Rio, Fernando
Licandro, Omar
Boucekkinne, Raouf

Titolo
Obsolescence and modernization inthe growth process
Periodico
European University Institute of Badia Fiesolana (Fi). Department of Economics - Working papers
Anno: 2001 - Fascicolo: 18 - Pagina iniziale: 1 - Pagina finale: 20

In this paper, an R&D based endogenous growth model is built up incorporating Schumpeterian growth and embodied technolog-ical progress. Under embodiment, long run growth is shown to be aflected by thè following effects: (i) obsolescence costs add to thè user cost of capitai, reducing thè research effort; and (ii) thè modernization of capitai through investment raises thè incentives to undertake research activities. Applied to thè understanding of thè growth enhancing role of both capitai and R&D subsidies, we conclude that thè positive effect of modernization more than compensate thè negative effect of obsolescence. Keywords: Shumpeterian growth, Creative destruction, Embodiment, Obsolescence, Modernization. Journal of Economie Literature: E22, E32, O40.



Testo completo: http://www.iue.it/PUB/ECO2001-18.pdf

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