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Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/52846
Endogenous growth with capital in R&D production functions
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[eng] In this paper we claim that capital is as important in the production of ideas as in the production of final goods. Hence, we introduce capital in the production of knowledge and discuss the associated problems arising from the public good nature of knowledge. We show that although population growth can affect economic growth, it is not necessary for growth to arise. We derive both the social planner and the decentralized economy growth rates and show the optimal subsidy that decentralizes it. We also show numerically that the effects of population growth on the market growth rate, the optimal growth rate and the optimal subsidy are small. Besides, we find that physical capital is more important for the production of knowledge than for the production of goods.
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SÁNCHEZ-LOSADA, Fernando. Endogenous growth with capital in R&D production functions. UB Economics – Working Papers. 2014. Vol. E14/306. ISSN 1136-8365. [consulted: 8 of October of 2026]. Available at: https://hdl.handle.net/2445/52846