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An Endogenous Growth Model with Embodied Technical Change without Scale Effects

Bianco, Dominique (2007): An Endogenous Growth Model with Embodied Technical Change without Scale Effects.

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Abstract

In this paper, we extend the Romer90 model by introducing an embodied technological change and by removing the scale effects. We show that this model can still generate steady state growth in which the embodied technical change has an positive and permanent effect on growth in the long-run.

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