Download the fantastic book titled A Model of Growth Through Creative Destruction written by Philippe Aghion, available in its entirety in both PDF and EPUB formats for online reading. This page includes a concise summary, a preview of the book cover, and detailed information about "A Model of Growth Through Creative Destruction", which was released on 17 June 1990. We suggest perusing the summary before initiating your download. This book is a top selection for enthusiasts of the Economic development genre.
Summary of A Model of Growth Through Creative Destruction by Philippe Aghion PDF
This paper develops a model based on Schumpeter's process of creative destruction. It departs from existing models of endogenous growth in emphasizing obsolescence of old technologies induced by the accumulation of knowledge and the resulting process or industrial innovations. This has both positive and normative implications for growth. In positive terms, the prospect of a high level of research in the future can deter research today by threatening the fruits of that research with rapid obsolescence. In normative terms, obsolescence creates a negative externality from innovations, and hence a tendency for laissez-faire economies to generate too many innovations, i.e too much growth. This "business-stealing" effect is partly compensated by the fact that innovations tend to be too small under laissez-faire. The model possesses a unique balanced growth equilibrium in which the log of GNP follows a random walk with drift. The size of the drift is the average growth rate of the economy and it is endogenous to the model ; in particular it depends on the size and likelihood of innovations resulting from research and also on the degree of market power available to an innovator.
Detail About A Model of Growth Through Creative Destruction PDF
- Author : Philippe Aghion
- Publisher : London : Department of Economics, University of Western Ontario
- Genre : Economic development
- Total Pages : 0 pages
- ISBN : 9780771411168
- Release Date : 17 June 1990
- PDF File Size : 9,6 Mb
- Language : English
- Rating : 4/5 from 21 reviews
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