In this article, we argue that inflation increases complexity pertaining to knowledge production (or R&D). Then, expand a recently developed index based on entropy include the effect of inflation. As result new mechanism in an endogenous growth model, is no longer superneutral. can decrease economic non-linear way, sudden upward shock severely hurt and cut be responsible for take-off. These eff...

We extend Weitzman’s (1998) recombinant growth framework to include endogenous R&D decisions. The analysis is carried out in the (knowledgecapital) state space by means of two characteristic curves: one is identified as a turnpike along which growing economies evolve; the other attracts stagnating economies. Sustained growth depends on a condition relating the slopes of the characteristic curve...

Optimal growth models aim at explaining long run trends of growth under the strong assumption of full efficiency in the allocation of resources. As a result, the steady state time paths of the main economic aggregates reflect constant, exogenous or endogenous, growth. To introduce business cycles in this optimality structure one has to consider some source of inefficiency. By assuming that firm...

Much of the recent literature distinguishes between exogenous and endogenous growth models. We have studied the former, and now we look at the latter. What is the difference? The importance difference is that in the former the steady-state growth rate is determined exogenously, e.g., technical change. In the latter, it is determined endogenously. The models are interesting because they often le...

This paper develops a monetary endogenous growth overlapping generations model characterized by endogenous longevity and an inflation targeting monetary authority, and analyzes the growth dynamics that emerges from this framework. Besides the endogenous longevity which depends on the complimentarity of private and public health expenditures, the growth process is endogenized by allowing for a p...

This paper studies a generalization of the Schumpeterian models with endogenous market structure that allows the overall production structure to be more than linear in the growthdriving factor and yet generates endogenous growth, defined as steady-state, constant, exponential growth of income per capita. This version of modern growth theory, therefore, is robust in the sense that its key result...

In the present review it is not possible to discuss the effects of the numerous endogenous mediators of growth. What we have attempted to do is to indicate the areas of controversy and the need for further research. In our view, four main questions arise. First, what are the relative contributions of the direct and indirect effects of GH? Indeed, if GH can produce all its effects by local produ...

The focus of endogenous growth theory on human capital formation and the physical embodiment of knowledge in people, suggests the integration of the growth supporting character of health production and the growth generating services of human capital accumulation in an endogenous growth framework. We show that a slow down in growth may be explained by a preference for health that is positively i...