Counting innovations: Schumpeterian growth in discrete time

Cozzi, Guido and Galli, Silvia (2019): Counting innovations: Schumpeterian growth in discrete time.

Abstract

Schumpeterian growth theory based on creative destruction was originally designed for continuous time innovation and growth models. However its recently expanding use in DSGE modelling calls for an easily usable discrete time recast. We here show how to construct a discrete time version of creative destruction fully equivalent to its continuous time counterpart.

• Item Type: MPRA Paper
• Language: English
• Keywords: R&D and Growth; Creative Destruction; Discrete Time; DSGE.
• Subjects: E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights

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