In this paper we present and analyze a stylized model of endogenous growth with international technology spillover effects from the North to the South. The model allows for endogenous structural change and environmental degradation that reduces world output. We find that within this framework the costless technological spillovers foster structural change in both more and less advanced economies...

This paper analyses a RBC model in continuous time featuring deterministic incremental development of technology and stochastic fundamental inventions arriving according to a Poisson process. Other than in standard RBC models, shocks are uncorrelated, irregular and rather seldom. In two special cases analytical solutions are presented. In the general case a delay differential equation (DDE) has...

We study a multi-sector model of growth with differences in TFP growth rates across sectors and derive sufficient conditions for the coexistence of a balanced aggregate growth path, with all aggregates growing at the same rate, and structural change, characterized by sectoral labor reallocation. The conditions needed are weak restrictions on the utility and production functions: goods should be...

This paper develops an endogenous growth model of a dual economy where human capital accumulation is the source of economic growth. The dualism between the rich individuals and the poor individuals exists in the mechanism of human capital accumulation. Rich individuals allocate labour time not only for their own production and knowledge accumulation but also to train the poor individuals. Stead...

In this paper we specialize the Ngai-Pissarides model of growth and structural change [American Economic Review 97 (2007), 429-443] to the case of three sectors, representing the primary (agriculture, mining), secondary (construction, manufacturing) and tertiary (services) sectors. On that basis we explore the dynamic properties of the model along the transition path to the steady-state equilib...

How does technological progress occur? Is the nature of innovation stable over time? We shed new light on these questions through a mixture of empirics and theory. We begin with an empirical analysis of patents granted by the United States Patent and Trademark Offi ce. This analysis reveals several striking facts that emphasize the increasing importance of novel combinations of technologies for...

In this paper we extend the Lucas (1988) endogenous growth model to include sector-specific external effects and depreciation in both sectors. We derive analytically, the restrictions on the parameter space that are necessary and sufficient for the existence of balanced growth paths and equilibria. We demonstrate that in contrast to the original model, with the addition of an external effect an...

This paper presents a microfounded theory of long-term development. We model the interplay between economic variables, namely the process of human capital formation and technological progress, and the biological constraint of finite lifetime expectancy. All these processes affect each other and are endogenously determined. The model is analytically solved and simulated for illustrative purposes...

This paper extends the two-class monetary growth model by incorporating fiscal activity along the lines of Pasinetti (Cambridge J. Econ. 13, 25–36). Despite this extension, the Cambridge equation is found to be one of long-run equilibria. It is shown that Fiscal policy decreases the accumulation of capital, through an increase in the proportional tax on profits. An inflationary monetary policy ...

FDI has received surprisingly little attention in theoretical and empirical work on openness and growth. This paper presents a theoretical growth model where MNCs directly affect the endogenous growth rate via technological spillovers. This is novel since other endogenous growth models with MNCs, e.g. the Grossman-Helpman model, assume away the knowledge-spillovers aspect of FDI. We also presen...